EUR/GBP Forecast August 3, 2017, Technical Analysis

The EUR/GBP pair initially rallied during the day on Wednesday, but then pulled back a bit. Later in the day, we rallied again. We have been consolidating in general, but I think the given enough time we should then reach towards the 0.90 level above. The longer-term trend is of course bullish, and with the Bank of England doing an interest rate announcement during the day, and more importantly a press conference, it’s likely that we will see some volatility. If we do fall, as long as we can stay above the 0.89 level, I am a buyer. If we can break above the 0.90 level, I am a buyer as well. I don’t have any interest in shorting this market, unless of course the Bank of England does something surprising like speaking a hawkish tone or tight monetary policy. That seems almost impossible, so I would expect that this market will eventually find buyers.

Brexit

The market continues to see buying opportunities on dips, as we have a lot of headlines coming out due to the negotiations between London and Brussels. I believe that the market should continue to be volatile, but that should only offer plenty of opportunities. I think that short-term buy on the dips type of moves are probably the best way to go. Once we do break above the 0.90 level, the market should continue to go much higher and become more of an investment or even a “buy-and-hold” type of market. Ultimately, this is a market that offers a lot of short-term trading opportunities, and should be treated as such. Expect a lot of noise during the session today, as the announcement from London of course will have the markets moving rather violently during those comments.

EUR/GBP Video 03.8.17