EUR/GBP Short Trade - 11.19.2012

Despite the increased efforts to avert a Greek default, the weakening outlook for the euro-area continues to reinforce a bearish outlook for the EUR/GBP, and we will hold our short from 0.8050 going into the EU meeting as European policy makers maintain a reactionary approach in addressing the debt crisis. As the head-and-shoulders formation in the euro-pound continues to take shape, we will maintain our bearish forecast ahead of the holiday trade, and we are still looking for a run at the 100-Day SMA ( 0.7961) as the pair carves out a lower top in November.