EUR/GBP fell on Friday as rumors of a French downgrade by S&P made their rounds. The pair saw the Euro fall, and completely reverse the move from Thursday. The pair is sitting just above the 0.82 level, and we think that the next two handles could cause a bit of support going forward. With the actual downgrade coming late in the US session on Friday, it is now a foregone conclusion that the Euro will continue to suffer over time.
However, the Pound isn’t exactly strong either. While the UK isn’t in as much trouble as Europe, the weakness in the UK will almost act as a “buffer” against the fall in this market. Because of this, we are selling rallies and a break below 0.80, but are not expecting massive breakdowns.
EUR/GBP Forecast January 16, 2012, Technical Analysis
Originally posted here
