Where The EUR/GBP Is Headed
A few weeks ago in our newsletter we discussed our view on the EUR/GBP. Essentially we were leaning towards the downside as it appeared that the pair was about to break lower. While initially we were drawn to this trade due to the great triangle pattern, the more we look at the fundamental situation the more we like it. Basically both of these currencies are loaded with issues. But with the UK having taken a lot of pain early via QE and the EU just now opening up to the idea that all is not well let alone QE, we think that this pair has a ways to go. Heck we think that the EU might lose the U here in the next few years as the PIIGS saga plays itself out.
FXE-EUR/FXB-GBP
Yellow Area=First target
Next Line Down=Measured Move
Happy Trading,
Disclaimer-We are short the EUR/GBP
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