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 Jan’07
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.