Nick Nasad
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EUR/GBP - Is 0.8460 the Neck-Line of Double Bottom or the Top of a Range?

The EUR/GBP is at an interesting juncture. I've been bearish on this pair for the last few months as the macro data from the UK has been relatively stronger in comparison to the Euro-zone. But while macro data is good for understanding the underlying fundamentals of an economy and in the long-term has a sway over currencies, in the shorter to medium term, the forces at play - positioning, bank and capital flows, technical traders, etc - can push currencies any which way.

We may have to wait till next week to see where this pair goes as well as get a sense of why the GBP has been sold off the 2nd half of this week. I'll let price action and the response to this 0.8460 level give me clues as to whats next - a return to the downtrend, or a larger retracement/double-top pattern to the topside.

- Nick