Video Analysis – EUR/GBP February 12, 2015

Looking at the EUR/GBP pair, you can see that at the 0.74 level we are starting to form a hammer. This of course suggests that we could get a little bit of a bounce at this point in time. However, I believe that this ends up being a nice selling opportunity if we do bounce, because it offers value in the British pound. I believe that the 0.75 level offers resistance, the 0.7550 level offers resistance, and then also the 0.76 level beyond that. In other words, there’s just no room for the buyers to push this market in my opinion.

If we do break the bottom of the hammer, that of course is a very negative sign as well and as a result the EUR should continue to fall against the GBP. I still believe that the longer-term chart suggests that we are heading down to the 0.70 handle given enough time.