EURGBP now looking to push on after busting into 0.80
We're in familiar territory for me as we're close to the area I sold nearly a year and a half back.
While 0.80 is a big level in it's own right, the 0.8030/40 level is bigger technically.
EURGBP weekly chart
It was a very strong level back in 2014, much like we've seen in EURUSD around 1.1400/50, so it's worth considering.
Aside from resistance via the range of highs, the 38.2 fib of the 2008 fall is bang in amongst it too. When I took the short last time it was on the policy divergence between the BOE and ECB while the UK recovered as Europe stayed flat. Those fundamentals have changed somewhat and that caused me to close off the last of the shorts earlier this year. The level could still be a good shorting opportunity from a technical stand point, but not a fundamental one, right now at least.
I'm toying with placing a small short here to see if 0.80 fails, and then adding a bit more somewhere around 0.8020/25. I'd probably keep it fairly tight with a stop close above 0.8050 or maybe 0.8060.
