EUR/GBP Forecast September 22, 2017, Technical Analysis

The EUR/GBP pair continues to grind around just above the 0.88 handle, an area that has been important over the longer term. Because of this, I think that the market will continue to find a lot of interest in this general vicinity, but I do recognize that if we break down below the 0.8785 handle, the market will break down significantly. This is a market that continues to be choppy and volatile, and of course continues to be influenced by headlights coming out from the Brexit negotiations. It appears that the Bank of England is probably going to be raising interest rates quicker than many other central banks, and that of course has been one of the main reasons for the bearish pressure in this market.

EUR/GBP Video 22.9.17

Lots of noise

I believe that the market will continue to be noisy, because there will be headlines that can move the markets at a whim. I also believe that we have been in a longer-term uptrend, so I think that the breakdown will continue to be difficult to achieve, but if we do slice through the support just below, we could be going as low as 0.85 in a flash. Then I think that buyers will be looking to pick up what has been a longer-term uptrend with a reasonable amount of reliability. Either way, I think that given enough time, the longer-term buyers will probably return because there will be of course concerns about the British economy after the break up. I think that it is going to continue to be very difficult market, and it is probably best traded from short-term perspectives as headlines will of course force that type of trading. After all, somebody can say something in either London or Brussels to make the market turn around and run 50 pips in the opposite direction.