EUR/GBP Forecast Nov. 30th, 2011, Technical Analysis

The EUR/GBP pair fell hard on Tuesday as traders bought the Pound in general. The Euro continues to be plagued by poor bond auctions with the Italians having to almost pay 8% on their 10 year notes now. The capital seems to be flowing out of Europe and heading into the UK, and the pair looks set to test the 0.85 support area. If we can get a daily close below it – we are short of this pair. Otherwise, we expect the consolidation to continue between the 0.85 and 0.8650 levels as neither one of these currencies are showing strength on the longer-term charts.

EUR/GBP Forecast Nov. 30th, 2011, Technical Analysis EUR/GBP Forecast Nov. 30th, 2011, Technical Analysis

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