Although the EURGBP has been on a downward slide for the past six months, Alan Collins from 3c Analysis says that there is potential to take advantage of a slight bounce in the market. Investors rejected the currency pairs' new two year low yesterday at EUR 0.7789. Viewing this as a positive sign, Alan believes that EURGBP could experience slight gains this week.

The euro has weakened against a basket of major currencies recently, most notably against the US dollar as EURUSD hit its lowest level since September 2012, at USD 1.26. Investors will be watching the euro closely this week ahead of the European Central Bank’s policy meeting scheduled for Thursday, October 2nd. In September, the ECB announced plans to cut interest rates and engage in a stimulus package.

Alan is expecting to target EUR 0.7830 and EUR 0.7856 as the market rebounds. He cautions though, that a move below EUR 0.7755 negates this trade idea centered on a quick bounce in the market.