EUR/GBP Forecast August 2, 2017, Technical Analysis

The EUR/GBP pair continues to be very volatile, and as you can see, we fell a bit during the day on Tuesday. Ultimately, the market looks likely to find support at the 0.89 level underneath, which is a large, round, psychologically significant number. Because of this, I think it’s only a matter of time before we reach towards the 0.90 level above. That is massively resistive, and I think that this market should continue to be volatile due to the fact that the negotiations between the European Union and that United Kingdom continue. That will send headlines into the new cycle, and those of course can move this pair.

Consolidation leads to continuation

I believe that is only a matter of time before the consolidation breaks to the upside as it typically leads to continuation. However, that’s not to say that we can drop from here. I prefer to see some type of breakout, or at least a supportive candle near the 0.89 level that I can start buying to take advantage of value. A break above the 0.90 level would show a continuation of the overall uptrend, and could send this market looking towards the 0.92 handle. I am bullish of this pair, but I also recognize that we will continue to see a lot of noise in this market.

EUR/GBP Video 02.8.17