But the last couple of days have been pretty brutal for the dollar against the pound, although Thursday is starting to see a little bit of pushback. That budget deal in London evidently got everybody excited, but really, at the end of the day, I don’t know that that matters in the end. I am still looking for selling opportunities.

EUR/GBP Technical Analysis

The euro has gone back and forth against the British pound during the trading session on Thursday as well and we are hanging around the 0.8750 level. We are also hanging around the 50-day EMA, but this level was previously resistance, so it should be support. We’ll have to wait and see, but if we can break above the highs of the Thursday session, I suspect that the euro bounces against the pound again and we go looking to the 0.88 level. Ultimately, I have no interest in trying to short this pair. It’s far too strong of an uptrend.

But I would have to take notice if we dropped below the 0.8725 level, as it would be a sign of trouble.

For a look at all of today’s economic events, check out our economic calendar.