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The EUR/GBP pair rose during the session on Tuesday as the 0.80 resistance level was broken above. However, the candle does look overly bullish, and as such we aren't necessarily impressed. We think that this market will continue to bounce around between current levels and the 0.79 handle, and as such we aren't ready to make a trade yet.
The British pound in general is relatively strong, and as such we don't like being short of it. On the other side of the equation, the Euro seems to be strong as well. Because of this dynamic we are essentially avoiding this pair in the short-term as both currencies do so well. Once the market start focusing on the problems in Europe again however, we will be more than likely very short of this pair as the trend is decidedly downward.