EUR/GBP Forecast February 25, 2016, Technical Analysis

The EUR/GBP pair initially fell during the course of the day on Wednesday, but we found more than enough support below to turn things back around and start charging higher. This of course makes quite a bit of sense, as the Euro found quite a bit of support against the US dollar near the 1.10 handle, and more importantly the British pound broke down below significant support into US dollars well. Remember, how a currency trades against the greenback is a true barometer of its complete work, so having said that it makes sense that the euro finding support and the British pound falling apart both well for this trend.
I still believe that the 0.80 level above is the target, and the given enough time we will reach it. Pullbacks should continue to offer buying opportunities, as we have made a “fresh new high.” Ultimately, it is very likely that this market sees quite a bit of strength and volatility from time to time as the market will continue the longer-term uptrend that we’ve seen. If we can get above the 0.80 level, this market really could take off to the upside for quite some time.
Currently, we see the “floor” in this market as being the 0.77 handle, but that should begin to move up as the market has broken out to the upside. Given enough time, you have to keep in mind that the British pound may bounce, which of course would cause a bit of a pullback over here but it looks as if the market has most certainly made up its mind during the session on Wednesday, and we are going to go higher over the longer term. That being the case, there is no scenario in which I’m willing to sell this market, and I believe that if you are patient, this is a market that could provide quite a bit of profit. Remember, the moves are this big, but the PIP value is much stronger in this particular currency pair as opposed to some of the “normal ones.”