EUR/GBP hits fresh 7-year low

Here are the elements of a great long-term trade.

  1. A steady trend with little technical support/resistance
  2. Low volatility
  3. A great fundamental story

EUR/GBP has it all. The pair continues to make fresh low and there is nothing significant on the chart for another 500 pips.

On the volatility side, there have been some whipsaws but the largest low-to-high bounce this year has been 180 pips.

And the fundamental story is great. The UK economy is improving on its own but it also gets to reap the benefits of Eurozone QE while experiencing none of the currency-devaluing effects.