EUR/GBP: Will add to short position if EUR/USD breaks below 1.2350
The EUR still looks pretty sick to me but I’m also of the opinion that cable is close to ‘must-buy’ levels. Whether this is 1.5500 of 1.5350, I simply don’t know, but what I am sure of is that we are close to a base in cable.
The obvious way to trade this view is through a short EUR/GBP position. I’ve worn a few volatile swings already and will continue to build, getting more aggressive if EUR/USD breaks lower onto a new plane. Target levels are around .72/.73 early next year.