By FXEmpire.com
EUR/GBP had an interesting week as it initially surged, only to give back much of the gains on Friday. This could be predicated upon the idea that the ECB is about to start monetary easing again and as such the Euro will be sold off in general.
This also suggests to us that since most of the selling was on Friday afternoon, very few traders are willing to hang onto the Euro over the weekend. This shows a lack of conviction by all means. This means to us that this pair will more than likely continue much lower, and we are willing to sell rallies at this point in time. The 0.80 level still looks very resistive to us, and we think that any rally that approaches that area is an invitation to sell the Euro at higher levels. Of course, we would also be interested in selling on a break of the lows. As for buying, we simply see no reason to.
Click here to read EUR/GBP Technical Analysis.
Originally posted here
