EUR/GBP has closed on its 100-day MA (technicals to come) and GBP is benefitting by default rather than on the basis of any major developments.
M&A speculation, the EUR and the USD have their problems and the AUD is over-bought; hence the positive sentiment for the pound at the moment (plus the market is still short sterling). I think the market is intent on testing important GBP resistance levels at .8790 in the cross and 1.7040 in the cable- if both these levels break then we may be in for an extended period of GBP strength. Nevertheless, I am recommending that GBP longs (myself included) book some profits on the approach to the above levels.
