The EUR/GBP pair rose during the session on Thursday, but fell later to form a shooting star. The Wednesday candle was a hammer, so this suggests that we are going to see consolidation in a very tight range around the 0.83 level. The fact that such an obvious hammer failed to be followed through on Thursday tells us that the downtrend is more than likely going to continue, and as we like selling this pair – we are looking to get short on a break of the Wednesday lows. The Euro is far too toxic for us to own in general, and although we aren’t necessarily fans of the Pound – it isn’t the Euro, and that’s its biggest strength at the moment.
EUR/GBP Forecast March 16, 2012, Technical Analysis
Originally posted here
