Despite Friday’s disappointing action, the near-term outlook for UK equities and EURGBP remains solid enough. The uptrends are clearly intact for now, especially on the daily charts. I have lost my fair share of money in the past by trying to short still-rising markets, and have also foregone good profits by exiting long positions too early. My instinct now would be to keep faith with the FTSE’s rally, but also with the downtrend in GBPUSD. The DAX, meanwhile, is in a fairly miserable state and I see no opportunity here for the moment.
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