EUR/GBP Forecast December 7, 2012, Technical Analysis

The EUR/GBP pair fell rather precipitously during the session on Thursday as the ECB Chairman Mario Draghi suggested that lower interest rates out of the European Union were starting to be asked for by the members of the ECB. If this is the case, we could see lower interest rates in the near-term, and this will certainly weigh upon the value of the Euro. Contrast this with the Bank of England and the lack of interest in continuing to stimulate the economy or cut interest rates and you will see that it makes sense of this pair begins to fall again. Because of this, we are willing to sell rallies going higher on signs of resistance, and willing to sell on a break below the 0.8050 level on the daily close.