The Pound is not having a good year. It's down against almost all majors and that includes the Euro as well. This pair initially rallied to a high of 0.9326 this year, over 2,000 pips above he lows hit in November of last year. But as we can see on the first chart below, that may be changing.



We're now quoted at 0.8468, almost 900 pips below the highs. Notice how the EUR/GBP is now entering a cluster of levels, both resistance and support. On the downside we have 0.8248 and 0.8335. On the upside we have 0.8729 and 0.9326, among many other levels. I expect to see this pair bogged down inside these levels, producing a trading range during December.



Our second chart above shows that momentum has been lacking on the lower time-frame charts, with prices bouncing off support. This is another argument to support my thesis that the pair will not go far next month. I'm betting on prices staying close to where they are right now.
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