EUR/GBP Forecast August 11, 2017, Technical Analysis

The EUR/GBP pair initially fell during the day on Thursday, reaching down to the 0.90 level. Ultimately, this is a market that should continue to see the upside favored, and now that we have bounced from the 0.90 level, it looks likely that we will reach towards the 0.91 handle, or perhaps even higher than that towards the 1.029 handle. The market is in a bullish uptrend, so I don’t have any interest in selling any way, and ultimately I think we will break above the aforementioned 0.92 handle. A break above there should then go to the 0.95 level after that. I have no interest in shorting this market, mainly because I believe traders will continue to buy dips going forward. I think that’s traders also have more confidence and the European Union and the United Kingdom, mainly because there are far too many questions as to what will happen in the UK after the separation from the European Union.

Buying dips

I think that most traders are looking to buy dips in this market as they represent value. I would add slowly and simply build a massive position so I can go to the upside. Ultimately, I think that the market will then go to the 0.95 level where we would see a massive amount of resistance, but I think parity is probably where we are going to go over the longer term. If we break down below the 0.88 level below, that could break the entire uptrend, but quite frankly I don’t think that’s going to happen anytime soon. Ultimately, this volatility should continue as we see headlines cross that could cause the wires that cause concerns in one direction or the other. However, I think the uptrend is very much intact longer term.

EUR/GBP Video 11.8.17