EUR/GBP rose during the session originally, but fell later in the session to form a shooting star just under massive resistance at the 0.84 level. The failure is one of several, and the previous few days saw a couple of hammer-like candles as well. Because of this, although the pair looks very weak overall, there are better and cleaner trades out there.
If we had to take apposition, it would be short. The braking below 0.83 actually would clear both of those supportive candles, and have us selling in real life. But the market is a grinding one, and both of these currencies are necessarily favorites at this point in time. Because of that – we are flat in this market.
EUR/GBP Forecast January 27, 2012, Technical Analysis
Originally posted here
