EUR/GBP Forecast December 28, 2016, Technical Analysis

The EUR/GBP pair rallied on Tuesday, using the 0.85 level as a springboard. I still see quite a bit of noise all the way to the 0.87 level above, so having said that I think that signs of exhaustion will be selling opportunities in a longer-term downtrend. That should send the market looking for the 0.8350 level underneath, and then eventually much lower. The European Central Bank extended quantitative easing by nine months, and I think that will continue to work against the value of the EUR going forward. I have no interest in buying.