AUTOREFRESH 
EUR/GBP: reverting to sell-rally strategy
By Sean Lee || February 10, 2010 at 03:15 GMT
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The rally off the .8595 lows looks to be running out of steam and I am reverting to the sell-rally strategy in line with the dominant medium term downtrend. The market has retraced 50% of the .9025/.8595 fall and is also capped by the 200-day MA at .8820. Whilst modest gains back towards .8850/60 still remain possible, I now prefer to start playing this pair from the short side as I think the retracement is nearly done with. I am anticipating a move back into the low .80′s.
Sean, on eur/gbp where do you think a good rally point will be to sell? around 8800??? thanks for your ideas, great work
Hi Vivien. The ideal level on the topside is the o/n high at .8820. If London take it lower first (say below 8740ish) then our intraday high at .8785 assumes more importance. Just need to let the s/t mkt develop a bit more
thanks Sean, that strategy has just made a lot of past currency moves a lot clearer for me, appreciate it.
Vivien. I shorted eur/gbp @ .8762 23.5 hours ago 15pips down now. It has definitely stalled.
Hi Sean,
sterling stronger as expected, and spot on yesterday with some GBPJPY at 139 entry level.
I am still on a loss on GBPUSD, but patiently waiting for 1.6XX….I missed a sell on EURGBP for a few pips above 88, but better to save some margin.
By the way, the cross should soon start to move towards 0,85 – 86 again..agree with you again!
The pound always looks like its about to go to Zero right at the bottom. I’ve been trading the cable since 1986 and to be honest it has only sporadically traded outside of a 1.45/1.85 range, which is remarkably stable for such a length of time.
yes, pound is volatile and quite straight in his moves, so it easily create bullish or bearish feeling, usually being contrarian and accumulate on weak times and sell on strenght pays well