I have consistently argued lately that the rally in equities and also in the single currency was not over, but was merely taking a breather. Yesterday’s action vindicated this view. The FTSE moved sharply higher, and was also joined by the DAX, whose performance has been lame in recent weeks. EURGBP rose in pretty much the same fashion. And, I reckon there is more to come. The pause in recent session has helped to pave the way for further gains, by unwinding overbought daily momentum readings, but without harming the uptrend in price.
I seek long opportunities in FTSE, DAX and EURGBP, and continue to be negative on GBPUSD.
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