EUR/GBP barely moved during the light volume Monday session. With the Americans on holiday, and the news flow fairly quiet, this pair had little to react to. The 0.8350 area above saw a massively bearish candle form on Friday, and it looks as if the market is ready to fall again, and as a result we prefer selling.
The rallies can be sold, and a new low could as well. We believe that the 0.80 level is where this pair will eventually run to, but this pair is often prone to grinding in small moves, and has a hard time picking up momentum. You have to keep in mind that the two economies are majorly interconnected, and as a result – both are currently suspect. We will only sell, but know that the pair isn’t going to move very quickly in the near term.
EUR/GBP Forecast January 12, 2012, Technical Analysis
Originally posted here
