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The EUR/GBP pair fell during most of the session on Monday, but did bounce in order to form a hammer. The 0.7850 level looks to be supportive at this point in time, and it bounced does seem likely. However, we don't like buying the Euro in general and will more than likely pass on this signal. After all, the trend is decidedly negative, and there is nothing that has changed over the last couple of sessions to make us believe that the Euro is suddenly going to be a great value.
As for selling, we need to see the hammer from Thursday get broken to the downside in order to start selling again. This would show a capitulation of support, and a continuation of the overall trend. Until then, we are flat.