EUR/GBP Forecast for the week of December 3, 2012, Technical Analysis

The EUR/GBP pair was slightly positive at the end of the week after bouncing around, but we still remain within a fairly tight consolidation range between the 0.80 and 0.8150 handles. With that being said, we think that this market can be very difficult to trade until we break above the 0.8150 level, or break down below the 0.7980 level. Until that happens, long-term trading is impossible. However, we have to admit that the longer-term trend is to the downside, so shorting this pair will certainly be easier than buying it.