EUR/GBP Forecast August 22, 2017, Technical Analysis

The EUR/GBP pair initially dipped lower during the day on Monday, but found enough support near the 0.9100 level, as the market has been in an uptrend for some time. The market pulling back from the highs from Friday isn’t a huge surprise, as we are getting close to the vital 0.92 level above. That’s an area that has been resistance in the past, so it may take a bit of momentum building to get above there. Once we do, I think that the market goes to the 0.95 handle above, which is the next large, round, psychologically significant number. Ultimately, this market could very well find itself going towards the parity level, but it’s obviously you to take some time to get there. I think the dips continue to offer buying opportunities, and I think that the 0.90 level underneath is the floor currently.

Buying on the dips

I believe that buying on dips gives you an opportunity to pick up a bit of value in a market that is obviously in an uptrend. I think that the British pound will continue to suffer in general, because quite frankly that the negotiations between the European Union and the United Kingdom will continue to cause headlines, making traders a bit cautious. We’ve been in a longer-term uptrend for some time, so I think it makes sense to follow that uptrend. Any time we pull back, you should be looking at it as an opportunity to find value in a massive moved to the upside. I don’t have any interest in shorting, least not until we break down below the 0.88 handle, which is quite far below where we are. This market has multiple support levels underneath, so I am going to be looking for an opportunity going forward.

EUR/GBP Video 22.8.17