EUR/GBP rose over the session on Tuesday as traders continue to figure out who is going to get hurt the most from the EU debt crisis. The Euro has enjoyed a bit of a bounce lately in this pair, but the reality of it is that both currencies aren’t liked. The 0.83 level is where we are closing, and the level is also considered to be resistance as well, albeit a minor one.
The pair cannot be bought as the Euro is far too toxic to own in general. The Pound isn’t exactly loved either, and looks set to enter a massive sell off against the Dollar. The pair is a sell overall, but as both economies are struggling – this pair will grind lower, not fall. We are looking for resistive and weak candles in the near term from which to sell. Currently, we don’t see the signal.
EUR/GBP Forecast January 18, 2012, Technical Analysis
Originally posted here
