Shorting EURGBP ahead of key resistance
A few highlights from this trade idea (see PDF attached to this post for full details):
- The Euro got a boost on the recent hopes that Greece would be given a break on its debt and possibly as well on a simple positioning squeeze, particularly in the likes of crowded Euro/commodity currency shorts
- Meanwhile, sterling has been punished as the BoE's King wouldn't rule out further asset purchases and complained a bit about sterling's strength and as the latest quarterly BoE Inflation Report showed reather dour growth and inflation forecasts for the coming year.
- EURGBP has risen rather sharply on these developments, but the upside could fade ahead of the 200-day moving average as the EU issues are intractable and as the GBP still looks like a safer harbour for capital than Europe.
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