Those of us who have been somewhat bemused and bewildered by EURGBP's fall to the low 0.70's will be a little cautious about getting too excited now we've popped back above 0.7200 this morning
0.7180 was a decent size resistance area with offers to match and with EURUSD breaking up through equally strong res at 1.0625 we've taken out more offers at 0.7200 to post highs of 0.7206
But with GBPUSD unsurprisingly finding a few bids after dropping 100 pips today from its earlier rally to 1.4845, and with EURUSD retreating from highs of 1.0642 we've seen EURGBP also dip to 0.7189 as I type
So, where from here? Well, as I said we should be cautious of larger gains today especially with more sizeable res/offers at 0.7220-25 but equally we should be looking for the pair to consolidate gains above 0.7175-80 and I see that now as an intra-day range give or take a few pips.
As I have often said the forex markets are the most fickle of them all and greed is never a good thing, especially intra-day as it can come back to bite you up the backside, but patience equally can sometimes bring its own additional reward
I think we are/have been starting to see a correction/change of sentiment on the euro that has further momentum to go higher, but it's a long way from getting out of the woods just yet.
