By FX Empire.com
The EUR/GBP pair rose during the majority of the week as we continue to grind around between the 0.84 and 0.83 levels. This pair recently tried to break out and above the 0.85 level, but was rapidly turned away at that level. The pair is certainly weak, and this makes sense as the Europeans still have a long way to go with their crisis. However, the Brits are heavily exposed to Europe in multiple ways, so although the Euro will be weak, the Pound will be too. This is simply a battle between two lightweights in the markets, and the trend favors the Pound at the moment. We would be short of this pair south of the 0.83 level on a daily close, but until then; we think more consolidation is ahead.
EUR/GBP Forecast for the Week of March 12, 2012, Technical Analysis
Originally posted here
