EUR/GBP Forecast for the Week of Nov. 28th, 2011, Technical Analysis

The EUR/GBP pair initially rose during the week, but was sold off in the second half as bond auctions went very poorly throughout the EU. The markets are starting to abandon the EU in general and the Euro as a result. However, the UK is highly connected to the EU and the results of that area. The UK exports over 30% of its goods to the EU, and as a result – poor economic news in the EU is poor economic news for the UK as well. The Pound is being sold off as a result now, and this pair is certainly a fight between two unwanted currencies. That will make this pair choppy, but the bias is more than likely to the downside. The two preceding weeks formed supportive hammers before this week’s shooting star. This pair appears to be winding up for a move, but the direction won’t be clear until we either get above the 0.8650 level, or below the 0.85 level. Until then, we are sitting tight in this pair.

EUR/GBP Forecast for the Week of Nov. 28th, 2011, Technical Analysis EUR/GBP Forecast for the Week of Nov. 28th, 2011, Technical Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *