EUR/GBP Forecast December 29, 2011, Technical Analysis

EUR/GBP rose on Wednesday as the Pound was punished in various different markets. The pair needed a bounce, and it should be noted that it stopped just a bit below the 0.84 level. The 0.84 level is an area that we have identified as possible resistance, and we are looking to see if there is any significant weakness shown at that level in order to sell. As an alternative, if the pair continues to rise, we would also be interested in selling on weakness at 0.85 as well, as it is the site of the recent breakdown and has yet to be retested.