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The EUR/GBP pair rallied for much of the week over the last five sessions, but failed to hold onto gains in the end. The candle for the week formed a shooting star, and as such it does look like the bearish pressure is starting to build up again. This also sets up the importance of the 0.79 handle as support. Quite frankly, if we get below that level this pair should continue to grind lower and retest the lows again.
We cannot help but recognize the fact that the Euro finished the week very poorly overall. Even though there were rallies everywhere on Friday for the currency, he gave up most of its gains. Because of this, we feel that the Euro is going to be weak in the short term. We would not buy this pair until we got above the 0.81 handle, and obviously prefer to sell as it is with the trend.