EUR/GBP Forecast September 12, 2017, Technical Analysis

The EUR/USD pair fell during the Monday trading session, as we have broken below the 0.91 handle. I still believe in the longer-term uptrend though, and I think that eventually we will see the buyers come back. I believe that the 0.90 level underneath will offer a floor in this market, and then give us a nice buying opportunity. The closer we get to that level, the more interested I am in buying this pair. I still think that this market goes to the 0.95 handle over the longer term, and then eventually goes looking for parity. This is because of the situation involving the United Kingdom leaving the European Union, and although that could be good for the British and the longer-term, there’s a lot of short-term uncertainty that will continue to weigh upon the British pound, especially against the Euro.

Buying pullbacks, looking for confirmation

I continue to think that buying pullbacks will be the way to go in this market, but I need to see some type of confirmation on stability. I’d like to see a stable day, or perhaps even an impulsive day to the upside. While we have been grinding lower, the reality is that the longer-term charts are very positive still, and that the pullback has been but a blip on the radar of the market. Because of this, I think that if you are patient you should be able to get an opportunity to go long of this market, and hang onto a trade for a significant amount of time. In the meantime, simply be patient, wait for signs of life from the buyers and join in. I would not be a seller of this market, because quite frankly I think that this market will turn around quite rapidly once it does.

EUR/GBP Video 12.9.17