EUR/GBP Forecast December 17, 2012 Technical Analysis

The EUR/GBP pair initially fell during the Friday session, but found enough support at the 0.81 handle in order to push this currency pair back up and into the 0.8150 resistance level. This is one of the more interesting pairs right now, especially on the longer-term charts for us as we think a break above the 0.8150 level will signify a new leg higher.

As for selling, we would need to see some type of resistant candle at the 0.8150 resistance level in order to do so. Right now, we do not see that resistance signal that would have us selling anytime soon. However, at the end of the trading day we could see something along the lines of a shooting star that could change our opinion. In the meantime, we expect to go long of this pair soon.