EUR/GBP skyrocketed during the Monday session as the talks involving Greece and investors were said to be making good progress. However, the market is currently under the 0.84 level, and this is considered to be massive resistance. With this area being just above, we are not willing to buy the market. The pair has been very bearish, and we are actually looking to see reaction to the 0.84 zone before buying or selling. In general, we prefer selling if we get the right candle, but only time will tell. A daily close above 0.8425 would be a buy signal, and would more than likely have the market running to test the more significant 0.85 resistance area. The forming of a weak candle in this area would have us selling right away. The Tuesday close should determine our next move.
EUR/GBP Forecast January 24, 2012, Technical Analysis
Originally posted here
