A day or so back i mentioned i was looking for the EUR/GBP to head to 0.8800 before finding support. We seem to be getting closer to that level with the daily tech studies oversold but having turned down once more, so expect a further spike lower at some stage to test that 0.8800 level. Do not discount the possibility of a move back to the 0.9030/50 region but i would be looking to get short on this bounce with a stop above 0.9120.
A break below 0.8800 would open the way for a move to 0.8625 but i think we are a little oversold to make it all that way without a retest of 0.9030/50 first. For now stops on shorts are best left above 0.9030 with a buy order left at 0.8825. If you are only recently short from 0.8950 or less your stop should be a little tighter at 0.8961.
