As you know I’ve been bullish GBP for quite some time now and booked my cable profits last week. Nevertheless, the GBP now looks very soft on some of the crosses and even though it’s not the most obvious fundamental trade, EUR/GBP certainly gives an obvious ‘technical’ entry level.
.8160 is a long term 61.8% retracement level and has held really nicely on a number of occasions. I’ve taken a long position with a tight stop at .8140 looking for a short-squeeze pre-BoE back towards .8250.