EUR/GBP Forecast December 31, 2012, Technical Analysis

The EUR/GBP pair fell significantly during the Friday session as the 0.82 handle continues to offer resistance. We fell and closed down at the 0.8175 level, and as a result are above the 0.8150 handle which had served as resistance previously. Now we need to see whether or not this area acts as support, and if it does we figure that there will be more upside in this marketplace. On the other hand, we could make a case for consolidation between 0.82 and 0.81 or so. With that being the case, we feel this market is far too choppy and the clearest signal by far is going to be some type of supportive action off of the 0.8150 in the near-term. Otherwise, we are going to remain flat of this market.