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The EUR/GBP pair broke out above the 0.79 handle and closed right at the 0.80 level on Friday. The area just above the 0.80 level however is very resistive as there is a ton of noise between here and the 0.81 handle. Because of this, we wonder how much more there is left in the tank when it comes to this rally. When you look at the totality of the charts, it's easy to see that this is just a quick pop in a strong downtrend.
As far as the British pound is concerned, we see as being far too strong against most currencies to consider shorting it at this point anyways. With this in mind, we are looking to sell signs of weakness in this currency pair, and believe that the 0.80 to the 0.82 zone will end up being a bit too resistive for the Euro bullish.