To move EUR/GBP up, we must buy Euros, sell GBP's. Why buy Euros rather than GBP's? Interest rates, 0.75 Eurozone vs 0.50 UK. Higher interest rate currencies always outperform the lower currency. But as EUR/GBP rises, GBP/EUR falls. To understand exchange rates is to look at the morning United States Fix,
Jan 22, EUR/GBP was fixed at 1 EUR = 0.83965 while 1 GBP cost or = 1.19097, a Fix price of 0.70501 but a market price 0.8400 thereabouts.. GBP/EUR consequently was Fixed in the opposite direction. 1 GBP = 1.19097 to 1 EURO at 0.83965 is an exchange rate of 1.4184.
If EUR/GBP was fixed at 0.70501 and the traded spot price is 0.8400 then EUR/GBP is overvalued by 1350 pips by the Fix. GBP/EUR is then undervalued by 1.4184 minus 1.1909 = 0.2275 pips at the traded spot price of 1.1909.
If traded market prices is the guide then EUR/GBP exchange rate at 0.8400 corresponds to GBP/EUR exchange rate of 1.1900. For every rise of EUR/GBP is a fall in GBP/EUR because we must buy EUR and sell GBP in the EUR/GBP equation while others may buy GBP, sell Euros in the GBP/EUR combination.
What is traded in the spot market is the price prediction of 1 currency and that is factored by most in the last two digits in the exchange rates. To earn 3 pips from EUR/GBP from 0.8411 to 0.8414, EUR/USD must go from 1.3311 to 1.3314 and GBP/USD holds at 1.5825 as one example of many combinations. Divide EUR/USD by GBP/USD to equal EUR/GBP and GBP/USD divided by EUR/USD = GBP/EUR. The corresponding long 3 pips of EUR/GBP is a fall by 3 pips in GBP/EUR.
EUR/GBP from my full distribution of averages 5-253, must correct back to 0.8312, 0.8298 and 0.8282. GBP/EUR correspondingly rises to 1.2030, 1.2051 and 1.2075.
EUR/GBP targets from averages: 0.8395, 0.8388, 0.8372, 0.8345, 0.8302, 0.8268, 0.8234, 0.8211 and 0.8142 longer term.
GBP/EUR targets from averages: 1.1910, 1.1920,1.1929, 1.1943, 1.1983, 1.2044, 1.2096, 1.2145, 1.2180, 1.2225, 1.2225, 1.2259, 1.2267 and 1.2282.
I'm Brian Twomey, not a coach nor signal service so respectfully ask to seek advice elsewhere.