EUR/GBP Forecast

  The EUR/GBP pair managed to gain again on Friday, but failed to keep gains as it stopped to form a shooting star. We don’t think this is Euro weakness – it’s been skyrocketing. It’s probably the fact that the Pound is suddenly finding a bid as well. Because of this, we don’t like this pair at all, as it looks ripe for the pullback, but it is also very countertrend to the latest action. We are neutral as we feel any move will be choppy since both currencies are so well liked at the moment.

  The EUR/GBP pair rose in a strong manner over the previous week, as investors bought the Euro against everything. The pair looks bullish, but is still stuck in a bit of resistance. With the market suddenly loving both of these currencies, this one could get choppy. We recommend avoiding it for a while because of that.

  EUR/GBP has finally broken above the 0.90 area, an area we said that gave us great concern form a bullish perspective. Because of this, we think the market might look a bit more bullish, but to be honest, it probably isn’t because of the Euro, rather the Pound’s weakness in general. We can see that the latter hours of the day saw this pair giving back some of its gains, so we aren’t convinced yet. A couple of session above the 0.90 might make us more bullish.

  The EUR/GBP pair rose during Wednesday and even managed to peak above the 0.90 area. However, it fell right away, and is closing as a shooting star. This is a very bearish candlestick formation, and should see this pair falling back into the consolidation area. We do not buy until we break above the top of this candle.

  The EUR/GBP pair rallied on Tuesday, and is approaching the 0.90 area. This area has served well as a resistance zone in the past. Because of this, we need to see it broken to the upside in order to buy this rally. The pair has been stuck in the consolidation zone of 0.90 and 0.86, and until we breakout, we don’t look to trade for any great length of time.

  The EUR/GBP rose in value on Monday, as traders have bought into the Euro to express their comfort in the prospects of a Greek bailout. While this is good for the Euro temporarily, it must be said that 0.90 has been a massive area of resistance, and unless something goes wrong in the UK, (and it very well could) we think the upside is somewhat limited at the moment, and look to sell weakness for a short-term trade.

  EUR/GBP fell again on Friday as traders keep finding reasons to hate the Euro. However, the Pound isn’t much loved either at the moment with possible quantitative easing in the near future. Because of this, the pair simply seems like it is confused at these levels, and doesn’t give us clear trading signals. We want to see a move past 0.90 or below 0.86 in order to get involved.

  EUR/GBP had a slightly bullish week as the pair bounced from the 0.88 mark again. However, it appears that the pair is tightening its range, and as such we feel no particular need to trade it. Once one of the two red lines on the chart has been broken, then perhaps we will revisit this pair for a potential trade. Until then, it’s far too choppy for our liking.

  The EUR/GBP pair collapsed early in the day, only to bounce hard when it was learned that the EU/IMF may have reached an agreement for a Greek 5 year austerity plan. Because of this traders rapidly reversed the losses, and bid up this contract. Our advice is to leave this pair alone as it is range bound, and has been choppy lately. Add to that the weakness of both of these currencies, and movements will be volatile.

  The EUR/GBP pair shot straight up on Wednesday as traders dumped the Pound en masse. The 0.90 area is just above, and this area has been significant resistance recently. Because of this, we do not want to buy, and also feel that perhaps this pair could pullback fairly quickly. The consolidation continues, and the Euro has too much baggage to own at the moment, so we suggest avoiding this pair.