The EUR/GBP pair fell during the session on Friday, breaking below the 0.7950 level. This of course is a fairly negative sign, as the downtrend seems to be in full effect, and should continue to extend much lower. I believe that the market should go as low as the 0.75 level, this is the next large, round, psychologically significant number, and therefore should have plenty of support added based upon longer-term charts. In fact, I believe that the 0.75 level is significantly supportive based upon a longer-term chart, and then I believe that the market will probably stop falling at that point.

In the meantime, I believe that any rally from here should continue to be sold off in the longer term, as the downtrend has been so strong. The 0.80 level should be massively resistant, as the area was so supportive previously. With this, I believe that the market is one that short-term traders will be attracted to, simply because the PIP value is higher than most other currencies pairs, and the trend is so strongly defined.

One way trading, only losers pick the bottom.

This is the type of market that simply cannot be argued against, and only the foolish would try to pick the bottom of this move. I believe that until we move above the 0.8150 handle, is going to be difficult, if not impossible, to start buying this market. After all, the British pound has broken out significantly against the US dollar, and that of course suggests that the British pound is going to continue going higher and value, pushing this pair lower. The British pound is by far one of the stronger currencies out there right now, so I believe that this trend will continue for the time being. However, you have to watch the GBP/USD pair, and that once we get to the 1.75 handle, there could be a pullback. This should be a great marketplace to come to again and again, and it is one that I will be watching for the next several handles.


Related Articles
  1. Investing

    What a Family Tradition Taught Me About Investing

    We share some lessons from friends and family on saving money and planning for retirement.
  2. Retirement

    Two Heads Are Better Than One With Your Finances

    We discuss the advantages of seeking professional help when it comes to managing our retirement account.
  3. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  4. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  5. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  6. Investing Basics

    Why Interest Rates Affect Everyone

    Learn why interest rates are one of the most important economic variables and how every individual and business is affected by rate changes.
  7. Entrepreneurship

    Top 5 Billionaires Living In Dallas

    Learn who the richest of the rich are in a city known for creating some of the world's wealthiest people, and read how they amassed their vast fortunes.
  8. Credit & Loans

    Best 3 Online Auto Loan Calculators that Include Tax

    Learn where you can find the best auto loan calculators online that include sales tax, and understand the different features these calculators offer.
  9. Taxes

    Tax Breaks For Volunteering

    Your volunteer ventures could earn you some welcome tax deductions, along with the satisfaction of helping others.
  10. Retirement

    5 Secrets You Didn’t Know About Traditional IRAs

    A traditional IRA gives you complete control over your contributions, and offers a nice complement to an employer-provided savings plan.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center