By FX Empire.com
EUR/GBP rose for the week as traders seem to buy into the idea that Europe is fixed. Rumors continue to swirl around the markets that the Greeks and their creditors are about to reach an agreement. (Have we seen this before?) With this, optimism comes back into the markets, and as a result the Euro gets bought, or rather short-covered, in several pairs at once.
The 0.84 level is the start of a massive resistance area that goes all the way up to the 0.85 level. The pair has broken above two shooting stars and now looks like it wants to try and break much higher. However, there is a lot to chew through first. The close above 0.85 is what it would take for us to get bullish at this point. A bearish candle has us selling somewhere between here and 0.85 or so.
EUR/GBP Forecast for the Week of January 30, 2012, Technical Analysis
Originally posted here
