EUR/GBP fell, and then rose during the session on Wednesday as the markets tried to understand what to do with the weakening US dollar. The level just above is very resistive, so a buy at this point in time would be very difficult. 0.84 is a barrier that this pair could struggle with, and even if it does clear it – 0.85 should provide a lot of resistance as well.
The candle is somewhat supportive though, and as a result we aren’t overly excited to sell at this level. A break below both the Tuesday and Wednesday levels would have us selling. In the mean time, we are staying flat in what looks like a choppy market just waiting to happen.
EUR/GBP Forecast January 26, 2012, Technical Analysis
Originally posted here
