Profit-taking ahead of ECB meeting

I suggested EUR/GBP shorts on February 14 at 0.8240 and while we have seen a low of 0.8157, the pair has staged a modest rebound and is at 0.8212 at the time of writing.

With the ECB meeting in play tonight I will take profits on the position, however I leave my short EUR/USD trade in play, with the idea of reducing my EUR exposure.

Traders who feel tonight’s ECB meet will be dovish could look to lower stops on EUR/GBP to 0.8310 (just above the multi-month downtrend).

I feel there are upside risks to the ECB meet given traders have positioned themselves for fairly bearish action from the ECB and I concerned they will be disappointed.

I close the trade for a 28 point profit or 0.3% gain and will look at new positions after the ECB meeting.


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