Last updated: Tuesday, February 23, 2010
After taking profit on the EURGBP short from the previous week, the pair bounced back to reach a high of 0.8838 during the overnight trade, but the lack of momentum to hold above the 200-Day SMA at 0.8822 continues to favor a bearish outlook for the pair. As the euro-pound maintains the broad range carried over from the previous month, I expect the exchange rate to work its way back to the downside and test the lower bounds of its current range. As a result, I placed a short entry at 0.8781, the 1/18 low, and will target the previous week’s low at 0.8664, with the stop at 0.8822, the 200-Day SMA.
