EUR/GBP Forecast August 8, 2012, Technical Analysis

The EUR/GBP pair fell during the session on Tuesday, as the resistance held in the 0.7950 level. The market is being tested by the first serious sign the resistance, it does look like it’s failing. Because of this, we are more than willing to start selling on a move below 0.79, and suspect that we will move back down towards the lows before it’s all said and done.

The British pound look strong against the US dollar overall as it continues to grind higher, but the Euro is the epicenter of all things bad right now. It is because of this that we simply do not want to buy the Euro, so buying it in this pair makes no sense either. We are selling on signs of weakness, or even a rally from here that runs out of steam. Buying this pair doesn’t even occur to us until we break the 0.8150 level.