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The EUR/GBP pair rose above the 0.80 handle on Friday as the Euro got a massive bid. However, this is somewhat unfounded as the British pound is so strong again so many other currencies. We believe that most of this is predicated on the idea of short covering in the Euro itself, and not selling of the British pound.
Because of this, we think that this pair will be one that you can sell on the first sign of resistance between 0.80 and 0.82 or so. We will not buy this currency pair until we get above the 0.82 handle, and as such we are currently looking to sell rallies that show weakness.