Large decline in EUR/USD today has moved this cross to near interesting actionable levels. EUR/GBP now at 0.8684. Low so far 0.8656.- Monthly : Triangle support nearby at 0.8625. Also previous low at 0.8598. Break of these levels = Sell EUR/GBP signal.
- Weekly : Same story.
- Core book short both EUR/USD and GBP/USD as part of higher USD view.
- Had earlier switched half of short EUR risk to short GBP at 0.8740. Not so clever in hindsight but at least the GBP leg is just about in the money.
- What to do now? Tempted to try and switch more at 0.8625 (ie assume triangle will hold) and unwind it all if we break 0.8598 on closing basis. Undecided now. Will watch closely. Range trading definitely not one of my strengths.
12 February 2010
EUR/GBP : Nearing Decision Time
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