EUR/GBP Forecast July 28, 2017, Technical Analysis

The EUR/GBP pair fell during most of the session on Thursday, as we crashed into the 0.89 support level. We did bounce significantly from there, but it looks as if we are trying to roll over again and continue to go even lower. Because of this, I think that the short-term sellers will get involved, and if we can break down below the 0.8890 level, the market will probably then go looking for the 0.8850 level. Given enough time, I think that the buyers will return but we may have to return towards the 0.88 level to see that happen. Alternately, if we can break above the highs from the session on Thursday, that could be a strong sign for the Euro, but in the meantime, I think the only thing that you can probably count on is going to be volatility.

Choppiness

I would be a bit concerned about trading this pair with any significant amount of money. Because even if we do continue to fall from here, it is against the trend, and that is always a trickier trade to take. Because of this, I believe that the market will continue to be dangerous, but given enough time we should get a signal on a higher timeframe that could give us a little bit more clarity when it comes to where were going next. I still believe we will try to reach towards the 0.90 level above, which was a massive resistance barrier in the past. Ultimately, I think we break above there and start looking towards the 0.92 level, but obviously it will take some time to get there. Keep in mind that this pair will be very susceptible to headlines coming out of both London and Brussels, as we negotiate the exit.

EUR/GBP Video 28.7.17