Euro Cross Pick 02.10.2011
The short EUR/GBP trade failed to materialize as price action closed at 0.8527 on Wednesday, but I sold the pair at 0.8492 following the Bank of England rate decision as the British Pound recouped the losses from the overnight trade. I initial had a tight stop at 0.8510, but have brought it down to cost and have left an open target for now as the pair clears the 50-Day SMA (0.8477) to reach a fresh daily low of 0.8467. I am looking to maintain the position going into the end of the week as the economic docket is expected to show producer prices in the U.K. expanding at a faster pace in January, and interest rate expectations for the BoE may gather pace going forward as the central bank maintains a hawkish outlook for future policy.
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