EUR/GBP Forecast August 7, 2017, Technical Analysis

The EUR/GBP pair went sideways initially on Friday, and then fell to reach towards the 0.90 level. This is a large, round, psychologically significant number, so it makes sense that we would find buyers here. I think that this pair will probably be very choppy as both currencies or falling significantly against the US dollar after the stronger than anticipated jobs number coming from America. However, I believe that the market still favors the EUR over the Pound, when it comes to the debate about the United Kingdom leaving the European Union. Because of that situation, it’s likely that we will see a bit of headline noise from time to time, but I still think that we will probably find buyers on dips.

0.92 target

For the short-term, I have a target of 0.92, but I think we could break above there. Once we do, the next target would be the 0.95 handle, and possibly even parity over the longer term. I think that this might be a nice way to avoid the US dollar overall, because quite frankly the EUR looks stronger than the British pound in general, and it should show itself quite nicely in this market. If we were to break down below the 0.90 level, the market will probably go looking towards the 0.89 level under there. Given enough time, I believe that the buyers will return due to the unknown circumstances surrounding the outlook for the British economy.

EUR/GBP Video 07.8.17