Euro Cross Pick 05.24.10
After attempting to short the EUR/GBP at 0.8588, the pair rallied to a high of 0.8766, which well exceeded the stop I had at 0.8630. However, as price action fails to hold above the 50-Day SMA at 0.8753, with the euro-pound paring the advance from the previous week, the exchange rate may trend lower this week as it maintains the downward trend from the March highs. As a result, I will look to sell the pair on a break below the 20-Day SMA (0.8589) and have placed short at 0.8570, the 10-Day SMA, and will look to target the 5/12 low at 0.8446, with the stop at 0.8630, the 4/29 low.
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