EUR/GBP fell slightly for the Friday session, but ended the day as a doji. The fall has been strong, and the last three days have seen this pair give up over 120 pips. In this pair, that can be thought of as a fairly strong move as it typically moves just 30 pips or so on normal days.
The fall shows that the weakness in this pair should continue though, and the candle for Friday sets up a fairly easy trade. If we break the top of this doji – we are going to wait to sell this pair at higher levels. The former support level at 0.83 should be expected to produce some resistance, so we would look for weak price action at that level. If we break the bottom of that doji – it tells us that momentum is picking back up to the downside, and we should be selling. We won’t buy this pair under any circumstance at the moment.
EUR/GBP Forecast January 9th, 2012, Technical Analysis
Originally posted here
