EUR/GBP: Worth a short-trade, but going will be slow

This pair should be trading at closer to .75 than .85 in my opinion, but as we know it’s timing that matters in this market, not getting it right or wrong. I got stopped out of my cable long position last night but I’m not giving up on the pound just yet, and I’m taking a small EUR/GBP short position at .8600; let’s see how that develops. I feel that levels near 1.55 are cheapish for cable (that doesn’t mean they won’t get cheaper!) and the break below 1.3400 (and the Bund auction) are good reasons to be short EUR.