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The EUR/GBP pair managed to fall at the end of the session on Friday, two print a wicked looking shooting star. This suggests to us that this pair will continue to fall over time, and as such we are willing to sell on a break of the Friday lows.
This makes sense of course, it as the European Central Bank looks set to embark on further easing. This will become an interest rate play, and as such people will prefer the Pound over the Euro. Going forward, we think that the bottom should be targeted yet again, and the bearish flag that we saw a couple of weeks ago the targeted 0.76 still looks valid. There is absolutely no reason to buy this pair as far as we're concerned.