Based on this assumption, do you have a related theory chart regarding the EURGBP? Can the GBP keep up or are we likely to see parity or worse in the EURGBP?
The down trendline from July 2008 has held the advance ( A third tap failure) for now but a horizontal line at about 1.3650 (not shown) also appears to be solid support. (Resistance at Dec 2004.) Monthly stochastic is very high but I am told there is no such thing as overbought in an uptrend!
As a UK Expat living in Spain I have retained most of my income producing assets in the UK but of course require Euros for living expenses.. If we have a change of government at next Mays election it is likely to have a negative effect on the GBP. Been trading since 1996 and can reasonably cope with daily / weekly swings, however, any longer term views from an expert are always welcome.
However, if the USD falling considerably is what powers this move, EURGBP may just float upwards gently or may not even be effected that much since the dollar variable is missing. :D