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The EUR/GBP pair fell during most of the session on Wednesday, but did find support at the 0.7950 area yet again. Looking at this chart, we can see that we have formed three hammers in a row, and this does of course suggest that we will be going higher in the short-term.
However, we do see that there is a bit of resistance at the 0.80 level, and as such we are more than willing to wait until the market breaks above it. Once over that area, we think that we could get as high as 0.8150 before running into a brick wall of sorts.
We don't like shorting the British pound in general, so this trade is just that: a trade. This is no long-term call for the Euro to continue strength against the Pound, just simply a set up that looks like a short-term trader’s type of move.