EUR/GBP forecast for the week of August 14, 2017, Technical Analysis

The EUR/GBP pair has broken above the 0.90 level during the week, showing signs of a continuation of the longer-term uptrend. I believe that the market should then go to the 0.92 handle, where I would expect even more resistance. Pullbacks should be buying opportunities going forward, as the 0.90 level should offer support. I believe that given enough time, the market should continue to extend gains towards the 0.95 handle. If we do breakdown, I believe that there is a significant amount of support at the 0.88 handle, and that is essentially the “floor” of the bigger move that we are currently in. This move be an impulsive suggests to me that we are going to see a massive amount of buying pressure.

Alternate scenario

I believe that a breakdown below the 0.88 level would change everything, perhaps sending the market down to the 0.83 level underneath. I believe that the market should continue to see bearish pressure if we do breakdown below there, and I think that is probably the least likely of likelihoods. Ultimately, I believe that the market should continue to go higher, perhaps reaching towards the parity level over the longer term. Keep in mind that the negotiations between the United Kingdom and the European Union continue, and that of course should offer quite a bit of noise to this market.

EUR/GBP Video 14.8.17