If EUR/USD stop-loss orders below 1.2950 get triggered, then we are also likely to see the crosses tumble, and heavy option interest at .8000 in EUR/GBP will prove magnetic. There are bids ahead of the big psychological level and stops directly below, but there’s also talk of decent corporate bids near .8000 as well.
In other words, let the stops below get triggered and then take profit or even get long for the usual short-covering spike!
Today might be fairly quiet but I’m guessing that this test will happen before tomorrow’s MPC meeting.
