EUR/GBP is looking vulnerable, obviously due to cable strength. We’re back in the channel and are on the way to posting three straight days of losses.

The cross is likely to be held up at the 38.2 fib from the Apr/Jul lo hi at 0.8626 but the stronger support will be below 0.8600 at the 50 fib at 0.8582 and the 55 dma at 0.8574.

eurgbpdaily 05 08 2013

With the channel bottom and 55 wma around 0.8562 I can see this as the likely interim low should we fall that far.

I’ve taken off some of my shorts from above 0.8700 but still retain a decent short overall.