EUR/GBP Forecast December 14, 2011, Technical Analysis

EUR/GBP fell again on Tuesday as the recent breaking of the 0.85 support zone shows just how weak the Euro really is becoming. The Pound isn’t a particularly strong currency, so this shows just how bad the Euro really is right now.

The recent EU summit had a spat with the UK not willing to sign the pact. It is interesting to note that this break down occurred just after this move by the UK. Perhaps it is the market showing a sign of confidence in the UK PM Mr. Cameron. The recent action certainly seems that it is. The pair simply looks broken at this point. A retest and failure to break above the 0.85 level would be massively bearish for this pair and have us selling. The breaking of the Tuesday session would be bearish as well.