EUR/GBP technicals: I don’t like short-cable trade until .8240 is reached in the cross

I know that there are quite a few people trying to pick a good entry point for short-cable trades but a look at the longer term EUR/GBP chart shows the difficulties this strategy is likely to encounter. Prices are falling like the proverbial stone and cable is likely to stay supported as long as this continues. The level to watch in my opinion is .8240. This is where the vertical upmove began and it could well be where the vertical fall starts to lose momentum. However if we start getting weekly closes on the .81 handle that would suggest further falls towards .7800. I will definitely wait until the cross turns before I start selling cable. Even if I miss the first 5 big figures, there will be lots more once cable resumes it’s downward spiral.

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