FxWirePro Call Review: Time to close EUR/GBP short call

In late February this year, we published an article named, “FxWirePro: Euro is likely to decline 500 pips against pound”, available at http://www.econotimes.com/ , where we recommended to our readers to go short in the euro against the pound at the then current rate of 0.852 with a target around 0.8 area.  The euro declined to as low as 0.83 against the pound and has recovered to the current rate of 0.866 as the risk appetite in the euro improved after the centrist independent candidate Emmanuel Macron won the French presidency.

Our forecasts in the euro and the pound, also published at http://www.econotimes.com/ says that we expect the euro to reach as high as 1.16 against the dollar and 1.35 in the case of the pound. So, we don’t feel the bullish momentum in the pound has ebbed, rather the risk-reward profile for the call has changed. While the pair might still target 0.85 area, the waiting period could be much longer and the pair might hit higher before it falls to the desired level.  Moreover, the pound could be oscillating in a range until the general election in the UK gets done with.

We would like to recommend our readers to get out of the short call in EUR/GBO at the current rate of 0.865 or the best rate possible.