EUR/GBP Forecast October 16, 2017, Technical Analysis

The EUR/GBP pair fell a bit during the day on Friday, reaching down towards the 0.8880 level. There is support there though, but I think the longer-term support is probably closer to the 0.88 handle, and I think that’s probably where we go next. After all, the weekly candle is a bit of a shooting star, but I do recognize that the 0.88 level underneath is massively supportive, and the top of what has been a very noisy area going back several months. There are plenty of buying and selling orders there, and that should keep this market somewhat afloat. Also, I believe that most currency traders will be much more comfortable owning assets in the European Union as opposed to the United Kingdom, because although the Bank of England is likely to raise interest rates, the reality is that the outlook for the European Union is much more certain than the United Kingdom, and quite often, that is what separates currencies.

I think given enough time, we will reach towards the 0.90 level again, and a break above there should send this market towards the 0.93 level which on the longer-term charts and turn the market around. Ultimately, I think that the market should continue to see plenty of buyers underneath, but we will have the occasional pickup like we have had over the last couple of days. Remember, the pit value in this market is twice what others are essentially, so we don’t need massive moves to make money. Slow and steady wins the race when it comes to trading the EUR/GBP pair, so I am patiently awaiting some type of support or an impulsive candle to the upside to start putting money to work. If we break down below the 0.88 level, it’s time to start rethinking everything.

EUR/GBP Video 16.10.17