EUR/GBP Forecast August 9, 2017, Technical Analysis

The EUR/GBP pair rallied a bit during the day on Tuesday, reaching towards the 0.91 handle. However, we turned around to show significant resistance of the EUR fell hard during the day, but there seems to be a significant amount of support at the 0.9050 level. That’s an area that has previously been resistive, so I expect that there should be buyers. However, if we break down below here, the market may go looking towards the 0.90 handle. That’s an area that is a massive round number, and that of course can attract a lot of attention. The market looks likely to find buyers on pullbacks as we are in a stronger uptrend, and I don’t think that has changed although we have seen a sudden pullback.

Buying these dips

I’m buying these dips going forward, and I believe that eventually we will try to go to the 0.92 handle above, which was the recent highs going back several months. Once we break above there, the market should go looking towards the 0.95 level, but that’s obviously a long-term move. I think that “buy-and-hold” traders will continue to go into this market, as we will continue to see a lot of noise due to the economic announcements and negotiations between the United Kingdom and the European Union. Currently, looks as if the market is favoring the European Union in this argument, and I think that will continue to be the case as there are far too many unknowns when it comes to the United Kingdom going forward. However, I believe that it’s not going to be a straight shot up, so it’s likely that pullbacks will continue to offer plenty of opportunities over the next several months as the negotiations continue through the rest of the year.

EUR/GBP Video 09.8.17