(Click on image to enlarge) Furthermore, it’s probably worth noting that the Bank of England chose to stand still as far as interest rates are concerned, and this is an obvious reaction to that. In general, this is a market that I think is going to start looking to the 0.83 level, which is a large, round, psychologically significant figure and an area that we have seen a lot of buyers in previously. If we break down through there, then it’s likely that they absolute floor will fall apart, and we could see the just dropped drastically. Looking at this chartLooking at this chart, there’s absolutely nothing positive on it, with perhaps the lone exception of the 0.83 level being an area that some people may be looking for to bounce. However, we would have to break above the 50 Day EMA in order to see some type of turnaround and a push to the upside that allows the market to go looking to the 200 Day EMA. Ultimately, I think this is a market that is in freefall, and it is very likely that we will continue to see a lot of money flow out of the EUR and into the GBP. In general, I think this is a situation that will continue to see a lot of questions asked about the overall attitude of risk appetite and of course the idea of whether or not we are going to see the European Union finally turn around and strengthen, or if the fact that the ECB has cut a couple of times in the BOE hasn’t bothered continue to push this market around.More By This Author:AUD/USD Forecast: Australian Dollar Continues To Face ResistancePairs In Focus – Sunday, Sept. 22Crude Oil Forecast: Continues to Recover
EUR/GBP Forecast: Euro Plunges Against Sterling
