EUR/GBP Forecast July 27, 2017, Technical Analysis

The EUR/GBP pair rolled over a bit during the day on Wednesday, as we reached towards the 0.89 handle. However, this is an area that could offer a bit of support, so a bounce in here would not be a huge surprise. Even if we did drop from here, I am not interested in selling, because I see so much in the way of support underneath. In fact, I believe that there is a “floor” in the market at the 0.80 level. With this being the case, I’m waiting for a bounce, or some type of supportive candle to start picking up the market and start going long. The market should then go towards the 0.90 level above where I see a massive amount of resistance. If we can break above there, that could be the next “leg up” in the market, and offer more of a “buy-and-hold” type of situation.

Buying dips

I continue to buy dips in this market, as I believe that the market offers value from time to time. Ultimately, this is a market that should continue to be volatile, but it should also offer a lot of opportunity for those who are willing to wait. There will be a lot of political headlines coming out when it comes to this pair, and of course the divorce of the United Kingdom from the European Union, but in the long term, I believe that the trend should hold, at least for now. If we break down below the 0.88 level, that would be a very negative sign, but I don’t think we’re going to get there. Given enough time, I believe that we will not only reach the 0.90 level, but breakout above there as most traders seem to favor the Euro over the pound.

EUR/GBP Video 27.7.17