The euro has been battered over the last four trading days, but the pound has held up nicely against the US dollar (see EUR/GBP chart second below). Why? Not sure. But we do believe the pound is set to turn down and we are looking for at least a couple hundred + pip decline, with scope to go a lot lower should risk return to the credit markets. With today’s dismal US unemployment numbers soaring beyond expectations, it seems Mr. Market is a bit too complacent. Another risk bid into the dollar anyone?

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EUR/GBP Daily: Note the 61.8% retracement in EUR/GBP. Maybe it is time for the pound to start weakening a bit against the euro and the dollar. Stay tuned.

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