EUR/GBP Forecast December 21, 2011, Technical Analysis

EUR/GBP fell below the recent consolidation area as the Euro fell against many currencies around the board. The EUR/GBP made a significant move when it broke down below the 0.85 handle a few days ago, and we believe this is the start of a leg down. The 0.80 level is more than likely the next stop for this pair, and as a result we are willing to sell at this point. Rallies would also have us selling as well. The 0.85 level would have to be broken to the upside for us to consider a change in our approach to this pair currently.