EUR/GBP Forecast October 1, 2014, Technical Analysis

The EUR/GBP pair fell hard during the course of the day on Tuesday but found enough support at the 0.7760 level to turn things back around and form a hammer. This hammer suggests that we could get a little bit of a bounce from here, but quite frankly we feel that any rally from here will be faded by a majority of the marketplace. It is not until we get above the 0.79 level that we think that the trend is ending for the short-term, and therefore are looking for selling opportunities above. On the other hand, if we break down below the bottom of the hammer that is a selling opportunity as well.