By FXEmpire.com
The EUR/GBP pair continued the downtrend this past week as the 0.80 level was once again violated. The market managed to close below it this time though, and as a result it looks as if we are going to see further Euro weakness.
The pair is essentially the expression of money leaving the European Union for the British Isles, and as a result this is somewhat of a “bank run” barometer. The 0.80 level is a long term “happy medium” for this market, and because of this we think that a significant move lower should end up being a long-term trade. A break of the lows from the previous week has us not only selling, but holding onto the trade as well. As for buying, we need to spend some time above the 0.81 level in order to consider it.
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Originally posted here
