Go long EUR/GBP at .8745 with a stop loss at .8625 and a first target of .9040-80.
Has held and bounced off very good trend line and moving average support in the .8637-.8683 area creating the potential for one of o the favourite patterns (Double bottom within a triangle)
Such a pattern would suggest much higher levels in the weeks and months ahead and there is a good risk reward payoff at this point.
On the weekly chart it has gone the most oversold since this up trend began in Jan07
Interest rate spread and EURGBP diverging
In favour of the EURO
We believe we are on the threshold of Euro out performance against a variety of currencies.