EUR/GBP Forecast August 1, 2017, Technical Analysis

The EUR/GBP pair continues to chop around the 0.8950 level, as Monday was a complete mass. I believe that the market is going to try to go higher over the longer term, but right now we are seeing strengthen both currencies against the US dollar, which of course is the benchmark as to how Forex traders measure a currency strength. As we continue the negotiations between the United Kingdom and the European Union, it makes sense that we will have a lot of jockeying back and forth. The market should continue to find buyers underneath based upon longer-term charts, but I think that the overall attitude of the markets and the short-term are probably going to be very choppy. If you are a longer-term traitor, you can be much more patient with this type of action, but if you are not, you need the 0.89 level underneath a hold as support to feel remotely good about this potential buying opportunity.

Massive support

I still believe that there is a massive amount of support underneath, and because of this it’s likely that the markets will continue to find enough reasons underneath to attract more buying pressure. Once we break above the 0.90 level, the market could be free to go to the 0.92 handle. Ultimately, this is a market that will be very noisy, but it should continue to favor the upside as the divorce proceedings between the 2 economies seems to be looked at as more dangerous to the British and the European Union, at least in the short term.

EUR/GBP Video 01.8.17