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.

  1. Cable looks on a base already gobbling up my several stops…
    Regarding EUR, futures contract has formed several great volumes on figures 2480, 2440, 2390, then 2415 consequently and 2405 right now. Such a persistence in forming of those volume levels looked rather bullish, or at least shorts covering. So, I guess the cross may avoid any slide down before ML King day, especially when cable’d build new base lower. The reason might be found in further sluggish explanations of SuperMario about delay in opening of any easing programs, that is still expected by market.

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