Wednesday, 16 January 2013

EUR/GBP Forecast January 16, 2013, Technical Analysis

The EUR/GBP pair fell during the session on Tuesday as the 0.83 handle proved to be a bit too difficult for the buyers to maintain. If you look at the charts, we essentially have a "2-day shooting star" which of course is very bearish. The fact that we have turned the market around suggests that we are going to see lower prices, and we think this is more than likely going to be done in fairly short order. We aren't necessarily calling for some type of meltdown; rather a pullback in what has been an obvious buyers market. Because of this, we will be patient and look for some type of supportive action below to start buying on the daily chart.

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