By FXEmpire.com
The EUR/GBP pair fell during much of the week, only to turn around and bounce back on Friday forming a hammer. The hammers bottom, it is at the 0.80 level, and it does look like the Euro is about to gain on the pound for the time being. With the Bank of England looking to expand quantitative easing, this wouldn’t be that big of a surprise.
Although we are bearish on this pair in general, we can argue with the technicals and do have to adjust your strategy at this point. It almost looks as if the market is going to change its mind and focus more on the pound and less on the Euro. With all this being said, a break of this past week’s high would have us buying this market for short-term trade of perhaps a week or two. Otherwise, there are easier setups out there than trying to pick the less bad of to bad currencies.
Click here to read EUR/GBP Technical Analysis.
Originally posted here
