The weekly close in EUR/GBP below previously strong support at .8160 is a very bearish technical event and will certainly attract some momentum types who are desperately looking for a moving market. That said, GBP long positioning is at quite significant levels in both the professional and retail markets and the GBP bulls might struggle to generate any significant momentum unless the CPI and retail sales data sets are particularly bullish on the UK economy.
I’m in buy-dip mode on the GBP across the board but will stay patient. GBP/JPY looks overbought still on the shorter-term charts and GBP/CAD is another which could get nasty below 1.8150.
