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The EUR/GBP pair fell during the previous five sessions, but found a bit of support at the 0.7950 level in order to form a hammer for the week. This candle does suggest that we are going to continue to bounce around in the consolidation area that is bordered by the 0.7950 level as support, and the 0.8150 level as resistance. Both currencies are currently fairly strong, and as such is difficult to pick a "winner" at this moment in time.
Certainly the British pound isn't exactly a week currency, and as such we don't want to hang onto this trade for longer that we have to. The Euro is being propelled by lots of optimism, unlike the British pound which of course is being propelled by actual central bank fundamentals. With all this in mind, we expect that a break above the 0.808 handle will be a shorter-term trade more than anything else as we consolidate sideways.