EUR/GBP Forecast August 25, 2017, Technical Analysis

The EUR/GBP pair initially went sideways on Thursday, but then dipped rather rapidly. We did find a bit of support though, and it looks as if we are trying to clear the 0.92 level again and continue to the upside. Ultimately, I believe that the market goes towards the 0.95 handle, but that’s a longer-term causes pair tends to move rather slowly. Buying dips should continue to be the way going forward, as the pair has been in a massive uptrend for quite some time. I also believe that the 0.88 level underneath is massively supportive and essentially the “floor” of the overall uptrend.

Longer-term parity

I do think that the pair continues to go towards the parity level, if for no other reason than the uncertainty surrounding the United Kingdom leaving the European Union. There are too many “unknown knowns”, and that causes a lot of uncertainty in the British pound itself. We get GDP numbers coming out of the United Kingdom and that could also play a factor in this pair, but I believe that most people will be paying attention to Mario Draghi and his speech during the day. If there’s any hint of hawkishness out of this speech, that will probably send this pair much higher, perhaps reaching towards the 0.93 level. I think there are a lot of buying opportunities coming up in this market, and I like looking at pullbacks as potential buying opportunities in a market that should be massively supportive. Given enough time, I think that value hunters will return to this market over and over, as we should see the overall uptrend continue. After all, there’s been nothing to suggest that the overall trend itself should change. Expect volatility due to headlines, but at the end of the day it’s an uptrend that we are in.

EUR/GBP Video 25.8.17