As hopes for a credible stress test rise, EUR/GBP rises with it. The cross has probed through resistance at 0.8380 and looks like it might try and end the week above that level. A move back through 0.8420/25 would further reduce pressure on the cross and suggest a more significant rally could unfold.
1.2650 sell orders in EUR/USD are helping push Cable lower as cross plays unfold in the individual components If EUR/USD can’t go up but EUR/GBP continues to rise, GBP/USD has to go lower…There are a lot of moving parts here, so anyone of them could impact the other on the near-term, like any Rube Goldberg-type device.
