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EUR/GBP Forecast July 26, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Jul 26, 2017, 04:39 UTC

The EUR/GBP pair continues to be volatile during the session on Tuesday, and should be on Wednesday as well. The market looks as if it is stuck between

EUR/GBP daily chart, July 26, 2017

The EUR/GBP pair continues to be volatile during the session on Tuesday, and should be on Wednesday as well. The market looks as if it is stuck between headlines and technical analysis. Currently, the 0.89 level underneath seems to be supportive, but a breakdown below there could happen. If it does, I believe that the market goes down to the 0.85 zero level next. Alternately, if we break to the upside the market will more than likely test the 0.90 level. That area will cause a certain amount of psychological resistance, but once we clear that level, it’s likely that the market goes much higher.

Choppiness ahead

There will more than likely be choppiness ahead, so I don’t think that this is going to be the type of market that’s easily traded. Short-term moves are probably going to continue to be the overall attitude of the market, so unless you are willing to scout, this is probably a market that’s best left alone. The 0.88 level underneath should be the absolute floor in the market, so until we break down below there I am not expecting a longer-term cell position. Alternately, if we break above the 0.90 level, that could send the market towards the 0.92 level above which would be the next longer-term resistance barrier. Quite frankly, I think if we break cleanly above the 0.90 level, we probably go much higher than that, perhaps reaching towards parity over the very long-term chart. Remember, negotiations between the United Kingdom and the European Union continues to dominate what happens next, and of course this will make the pair very erratic and susceptible to sudden noise coming across the wires. It’s probably best to trade short-term and small if you feel it necessary to be involved.

EUR/GBP Video 26.7.17

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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