Euro Cross Pick 10.12.2011
The short EUR/GBP trade never panned out as the exchange rate rallied to a high of 0.8764 during the previous day, and I’m certainly glad I stuck to the sidelines as the pair advances to a fresh monthly high of 0.8784. As the pair breaks out of the downward trend from earlier this year, it looks as though we will see the euro-pound consolidate over the near-term, and the pair may face range-bound price action over the remainder of the week as it fails to push back above the 100-Day SMA at 0.8784. As the moving average holds up as near-term resistance, the pullback may gather pace over the remainder of the week, and I may take a stab at playing the range should the exchange rate close below the 200-Day SMA at 0.8714.
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