EUR/GBP Forecast September 14, 2012, Technical Analysis

The Euro had a fairly strong session against the Pound during Thursday trading day as the 0.80 level has given way. However, we see significant resistance all the way to the 0.81 handle, and as such we are not willing to go long of this market quite yet. Certainly, this pair looks very strong at this point and we do favor the upside now, but need to see the last vestiges of resistance give way first.

As for selling this market, we would need to see a close below the 0.79 handle which of course looks very unlikely this point. This is someone countertrend and we aren’t exactly excited about selling the British pound at the moment as well, and as such we think this will be one of the more difficult trades to take. Quite simply put, we actually believe that buying the Euro will be easier against other currencies. Nonetheless, this does look like bullish market though.