EUR/GBP Forecast August 8, 2017, Technical Analysis

The EUR/GBP pair continues to favor the EUR overall, as we are trying to break above the 0.9050 level. The British pound of course has a lot of uncertainty surrounding it as they are negotiating their way out of the European Union. However, I think that we are starting to see some cracks in the foundation of the EUR in general, so pullback is very possible. I think we could be grinding away between the 0.90 level on the bottom, and the 0.9050 level on the top in the short-term. Longer-term, believe that we continue to go higher, because breaking above the 0.90 level was of course important.

Longer-term target

I have a longer-term target of 0.92 above, as it was massive resistance on the longer-term weekly charts. At that we could even break above there, but it’s going to take a little bit of help. Currently, the US dollar is starting to see a resurgence of popularity, against both of these currencies so it is essentially a fight between two struggling currencies at the moment. Given enough time though, I do believe that the EUR reasserts its dominance in week not only reach the 0.92 level, but go as high as 0.95 over the next several months. Remember, the pit value in this market is much stronger than other ones, so it doesn’t take as much of a move to make significant profits. I believe in buying dips, and look at the 0.90 level below as a bit of a “floor in the market.”

EUR/GBP Video 08.8.17