As Mike pointed out a couple of posts down talk of M/A action in EUR/GBP has put the breaks on cables attempt to take 1.60 and we’re now down to 1.5970. 0.8500 will be the level to watch and there is strong tech resistance at 0.8503.
Two days ago I noted the confluence of daily moving averages coming together. The 55 dma has moved down slightly but the 100 & 200 dma’s are tightening and will likely provide good resistance should this move break 0.8500.
EUR/GBP daily chart 11 10 2013
If there is M&A action going on then it should struggle at the big number. I’m going to short at 0.8495 and then more at the 100 & 200 moving averages. I may leave the trades on as part of my overall long term shorts or take them off if we get a decent reversal of 40-50 pips.
