EUR/USD is drifting higher in a relatively tight range dictated to by option plays. Therefore, if we know where EUR/GBP is going, we should be able to get a good handle on the cable.
The medium term trend is still bearish. The short-day MAs have had a mildly bullish cross which indicates a period of consolidation but there is as yet no sign of a bottoming pattern emerging. A short term base is in place at .8400 and the solid bearish trendline now around .8660 should provide excellent resistance. Look to play this range until further information arrives.
