EUR/GBP fell hard during the last week, and looks set to continue this trajectory going forward. However, it should be noted that the move has been pretty strong, and selling at this point is more than likely chasing the trade at these levels. While we certainly want to sell this pair – we need to do it at higher levels. This pair tends to be choppy overall, and knowing that it isn’t hard to imagine a scenario where the pair bounces a bit in order for us to sell it at higher levels. The 0.83 support level should be retested as resistance, and it if is – and it fails to break above it – we can join this market on the sell side. If the market keeps going – it is safer to simply admit that it might be too late at this point.
EUR/GBP Forecast for the Week of January 9th, 2012, Technical Analysis
Originally posted here
