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The EUR/GBP currency pair, which expresses the value of the euro in terms of the British pound sterling, provides a glimpse into the relative confidence that the market has for the United Kingdom and the European Union. That is, confidence in both their economies and the governments overseeing these economies.
However, as we have seen recently in EUR/GBP, the pair can catch many off guard. In fact, it caught me off guard; my previous article covering EUR/GBP was unfortunately extremely poorly timed. I took a bearish view on the pair in late February, yet the