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The EUR/GBP pair shot straight up over the last five sessions and tested the 0.81 handle on Friday. We are currently the top of a big resistive area, and as such a move above this level would indeed be fairly significant.
We would suspect that the 0.80 handle will be supportive at the moment; however we need to see a daily close above the 0.81 level to be convinced of the eminent breakout. All things being equal, we do admit that this pair suddenly look bullish even though the British pound itself isn't exactly weak. We think this is more Euro short covering than anything else.