EUR/GBP Forecast for the week of December 10, 2012, Technical Analysis

The EUR/GBP initially tried to rally during the week, but found the 0.8150 level far too restrictive and resistive to overcome. Because of this, we fell from that level and formed a fairly negative candle. However, we still see this market as being trapped in a 150 pip range. Because of this, it is not a long-term trader’s type of market right now, and as a result we will not be taking any weekly trade. However, if we get above the 0.8150 level, we figure this could be a longer-term signal to start buying. Alternately, if we managed to break down below the 0.7950 level, this would be a signal to start selling. Until then, we will do very little.