EUR/GBP: TDS recommends shorting of EUR/GBP rallies

In the context of a strengthening of the bearish GBP trend, TD Securities strategists recommend selling rallies of the EUR/GBP.

"This weak tone points to a sort of continuing vulnerability of the British pound, while the EUR/GBP is pushing to a new high.

"We are monitoring the 0.7483 level as a potential resistance area (7 May summit), but we do not believe we are observing a slowdown in buying interests prior to the 0.7550 area.

We will keep monitoring how this pair evolves, if and when we get up there, but this may be the point where we will seek to sell this bull squeeze and start rebuilding strategic short trades".