EUR/GBP Forecast July 18, 2017, Technical Analysis
The EUR/GBP pair went sideways initially during the day on Monday, but then rallied towards the 0.8775 handle. I think the market is going to try to get to the 0.88 level, where I expect to see a significant amount of resistance. If we can clear the 0.8820 level, then the market should be free to go much higher. This would essentially continue the longer-term trend, and therefore I think a lot of longer-term traders are paying attention to this market. I will be interesting to see if the British pound can continue its resurgence, as during the session on Monday we started to see the market pull back a bit from the break out in the GBP/USD pair. Longer-term, it does look technically bullish, so I think this market is simply waiting for the EUR/USD pair to finally break out above the 1.15 level. Once it does, that should give this market plenty of strength.
Longer-term charts
Looking at this chart, it looks as if the pair is very bearish, but you should keep in mind that this is just the last 4 days. Longer-term, this has been a very bullish market, although the volatility stemming from the divorce proceedings between the 2 economies will of course cause quite a bit of noise and consternation in the marketplace as politicians from both sides of the English Channel can say things to move the markets randomly. One of the best trading strategies that I have used as of late has been waiting for a comment across the wire and the market to react. And then I simply go on the opposite direction as there is a lot of posturing going on for public opinion currently, which is simply hollow chatter 9 times out of 10.
EUR/GBP Video 18.7.17
This article was originally posted on FX Empire