EUR/GBP Forecast December 20, 2012, Technical Analysis

The EUR/GBP pair rallied and broke through the 0.8150 resistance level that we have been wanting for some time now on Wednesday, but was beat back in underneath that level by the time the trading session ended. This produced a wicked looking shooting star, and because of this we now think that this pair is more than likely going to continue to consolidate between 0.8050 and 0.8150 for the time being. In essence, we are calling for a sideways market and this would of course make sense as the Dollar gained against both currencies in a massive reversal during the trading session. With this being said, we feel that shorting is probably the safer trade if you absolutely have to be involved in this choppy market.