EUR/GBP is severely overbought from the 5 day average, to the 50 day average, to the 253 day average, to the 5, 10 and 15 year average and to 4000 + day averages.
EUR/GBP overbought informs to the depth and degree of oversold GBP/USD. As mentioned in long term targets, GBP/USD broke big levels at 1.2998, 1.2892 and 1.2859 to achieve current 1.2700. On the way up, oversold GBP/USD must again break 1.2853, 1.2870 and 1.2928 to target 1.3000’s. The lower 1.2700’s GBP/USD drove EUR/GBP higher and this week the reverse will trade.
What allows GBP/USD higher are deeply oversold cross pairs as the GBP universe all now sits together in deeply oversold.
EUR/GBP is normally not a regularly traded currency pair because its a horrible currency and not worth clicks but a fairly easy trade is offered this week.
EUR/CAD is in the same overbought predicament as EUR/GBP and overbought from the 5 day average, 5, 10 and 15 year and overbought from 4000 + day averages. Long term target remains 1.5000’s.
Short anywhere or 0.9266 if seen to target 0.9051.
Short 0.8990 to target 0.8897.
Long 0.8897 to target 0.8959.
Long 0.9051 to target 0.9072.
Short 1.5667 and 1.5682 to target 1.5525.
Short 1.5473 to target 1.5301.
Long 1.5525 to target 1.5595.