EUR/GBP Forecast December 12, 2012, Technical Analysis

The EUR/GBP pair had a strong showing on Tuesday as the 0.8050 level offers support. However, we do see a lot of minor areas in this currency pair they keep us from being involved. Sadly put, is going to be far too choppy going back and forth in this market for us to be interested in anything other than a very short-term scalp.

If we do manage to close above the 0.8150 level however, we would start buying at that point. As for selling is concerned, it looks like the 0.7950 level needs to be broken down below in order to be confident enough to sell this market and hold onto it for any significant amount of time. In the meantime, it looks fully reasonable to expect that this market just goes back and forth in a very sharp and erratic manner.