Extreme weakness in the pound has catapulted EUR/GBP higher. After weeks of moving sideways below the 200 SMA, EUR/GBP has closed above that very much watched moving average. I would not chase it here but look for some kind of retest of the .8873 breakout area. Though Stochastics has crossed over into overbought territory, EUR/GBP could continue to move a several hundred pips while this indicator is in this area. The inability of the EUR/GBP to get and stay below the key .8700 level bodes will for a bullish trade.
Read More The Trend of the Day Long EUR GBP
