I’ve advocated long positions in the EURGBP for weeks but today’s reversal just shy an important 100% extension leaves the pair vulnerable to weakness in a 4th wave back to .9076 or so since the rally may have completed a third wave from .8453 (which is 5 waves itself). RSI has spent most of the time since mid September in overbought territory and is divergent with the high. The pair could eak out one more high prior to reversing of course but the risk of a correction lower outwieghs the potential for additional gains at this point. Coming under .9280 would signal that a larger correction is likely underway. Those that want to minimize risk but remain exposed in hopes of additional upside should keep a stop below there.
