EUR/GBP Forecast January 6, 2017, Technical Analysis

The EUR/GBP pair rallied initially on Thursday, but found a bit of exhaustion above. Because of this, I think that the sellers will return sooner, rather than later. An exhaustive candle has me shorting this market, and sending it down to the 0.85 handle. I’m not interested in buying until we break above the 0.87 handle, which is a significant resistance barrier. On a break above that level and a daily close, I’m willing to buy. Until then, I think selling short-term rallies on signs of exhaustion will continue to be the way going forward.