By FX Empire.com
EUR/GBP fell on Friday as the parabolic run over the last several sessions finally took a break. The 0.85 level contained the rally as we anticipated, and now the real question is going to be if the 0.84 gets retested as support. The trend is still down, and now we have to decide if the rally has been overdone.
The currencies are highly exposed to each other, and as a result they tend to be choppy in this pair over time. The breaking of the bottom of the Friday session would signal to us that the market will fall down to the 0.84 level, and we are willing to sell. The rally has come too far too quickly for us to get long at this point, and we would need to see a close above the 0.85 level on the daily chart in order to buy now.
EUR/GBP Forecast February 27, 2012, Technical Analysis
Originally posted here
