EUR/GBP forecast for the week of November 16, 2015, Technical Analysis

The EUR/GBP pair fell significantly during the course of the week, forming a very negative candle. We tested the bottom of the hammer from the previous week, and we are sitting just above the 0.70 level. Because of this, we think there is a significant amount of support in this area so it can be difficult for us to place any longer-term trade. We would need to break down below the 0.69 level in order to start selling from here, but we certainly have no interest in buying. We could perhaps see a bit of a bounce that gives us an opportunity to short this market again, and at this point in time we have no designs on placing money in this market.