EUR/GBP Forecast January 11, 2017, Technical Analysis

The EUR/GBP pair broke out above the 0.87 level during the day on Tuesday, but found a massive amount of resistance above that level. By forming a very resistive looking and more importantly an exhaustive looking candle, it looks as if the sellers may return. If we can break down below the bottom of the range for the session I would be a seller of this pair but recognize that we should see quite a bit of choppiness underneath. You will have to be patient for this move, but ultimately it would be going with the longer-term selloff that we had seen recently. Alternately, if we break above the top of the shooting star for the day on Tuesday, that’s a very bullish sign.

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