I posted yesterday that I thought the pair looked a little soft but that I felt that the levels of support still warranted a long from 0.8500. I went long at 0.8505 but I’m getting concerned about the price moves at the moment.
We’ve gone through most of the support including the 55 dma at 0.8496.
The last line in the sand for me is support buying at 0.8488 and the 200 H4 ma at 0.8490 which has held up the pair today at it’s low of 0.8491. 0.8489.
With the BOE announcement before the ECB the risk is for a sustained break lower. Cable is looking very strong and the euro rises don’t smack of anything substantial.
I’ve long maintained that I see the UK pushing ahead of Europe in a recovery which obviously would see EUR/GBP lower. I think that time is near and so the play will switch to selling rallies.