The EUR/GBP pair shot straight up again during the Monday session, but did pullback to give some of the gains back. However, it's obvious that the 0.85 level has been violated and jumped over, and as a result it looks like we are beginning the next leg higher.
Adding to the strength of this pair is the fact that the British pound sold off against many other currencies during the day, and as a result it appears that we have the all clear to continue buying this market. With this being the case, a pullback to the 0.85 level to retested as support isn't out of the realm of possibility, and would be quite welcome by me. If that happens, I am more than willing to start buying at this point in time.
Looking at this chart, it is absurd parabolic for my liking though, and as a result I actually would even consider buying is level is 0.84 handle if we see support down there as well. As far as buying up here, it feels like chasing the trade to me and I simply will not do that as there are other pairs involving the Euro that we can be involved in that aren't quite so overextended right now.
Grinding higher
I fully expect this pair to continue to grind higher over the long run, but I have to admit this is one of my least favorite pairs as it tends to be a slow mover. However, keep in mind that the pip value is higher, and as a result it doesn't have to move quite as far as you would be used to.
Also, I have to admit that the Pound is in an area against the Dollar that they could find quite a bit of support. If it does, it may slow the ascension of this pair in the near-term. If that's the case, of course I like the idea of I and those dips in this pair as it is obviously bullish now. Selling isn't a thought that I have at this point in time.