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The EUR/GBP pair fell during the session on Monday as the resistance held firm in the 0.81 level. Looking forward, this is a very messy part of the chart, and could send prices back down to the 0.80 handle. It isn't the 0.80 handle that we expect decisions to be made. If we can get below that, then we think the downtrend continues much lower. However, if it offers support, we should see a rally continue in this marketplace.
We think a lot of this move has to do with Euro short covering rally more than anything negative with the British pound. In fact, the British pound has been quite strong against many other currencies as well. Because of this, this is simply a chance for people to take advantage of the fact that the euro has been so oversold recently.