EUR/GBP Forecast October 10, 2014, Technical Analysis

The EUR/GBP pair went back and forth during the course of the day on Thursday, continuing to show the 0.7875 level to be significant resistance, and an area of perceived “fair value.” That being the case, we think that this market will probably be somewhat difficult to trade, but we certainly favor the downside as we have most certainly been in a downtrend over the longer term. That being the case, the market appears that it could be heading back down to the 0.7750 level, but it will certainly be choppy between here and there as it typically is anyway.