Euro Cross Pick 10.13.2011
After keeping a close eye on the EUR/GBP, it seems as though we’re seeing some resistance around the 100-Day SMA at 0.8785, and the pair may continue to retrace the rebound from 0.8532 as it maintains the range carried over from the previous month. In turn, I would like to see a close below the 200-Day SMA (0.8716) to play the range-bound price action, and we may see the euro-pound continue to trend sideways over the near-term as the fundamental outlook for Europe remains clouded with high uncertainty. As a result, should we see a close below 0.8716, I will sell the pair at market and target the 10/7 low at 0.8596, with at stop at 0.8730, the 50-Day SMA.
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