EUR/GBP Forecast August 31, 2015, Technical Analysis

The EUR/GBP pair initially broke higher during the course of the session on Friday, but found enough resistance above to turn the market back around and form a shooting star. More importantly, the weekly candle is a shooting star as well, so if we can break down below the 0.7250 level, we are sellers. We believe that the Euro weakness that we’ve seen in the EUR/USD pair will also come into play, while we formed a hammer in the GBP/USD pair on Friday which of course signifies that the British pound might get a little bit of a bounce. In other words, a move lower makes complete sense.