The chatter in the market over the last week has been that EUR/GBP would struggle to break above .8400. It seems that some interbank prop traders (the few that are left that is!) are buying into this view and there were a lot of fresh short positions put on last night as the cross approached .8400.
We can probably expect to see more bears join in now on any renewed approach to last nights .8390 high.
We can also be very confident that there will be lots of stop-loss buy orders now starting to build above .8430.
