No shocks to hear that a major euro zone national central bank may be operating in the cross and this is leading to shorts packing their bags. We’ve been up to 0.8267 on the last move and the action is weighing on cable more so than boosting the euro.

EUR/GBP daily chart 28 02 2014

EUR/GBP daily chart

We’ve bounced once more from the Feb 2013 support line and we may see a bit more in the way of month end buying towards the European fix at 13.00 gmt. I’m going to be getting interested in shorts if we get up to 0.8300.