EUR/GBP Forecast May 16, 2016, Technical Analysis

The EUR/GBP pair went back and forth during the course of the session on Friday, as we continue to hang about the 0.7850 level. There is a significant amount of support just below, and as a result it’s very difficult to imagine a scenario in which we are comfortable selling as we also believe that the Euro is going to continue to strengthen over the longer term in relation to the Pound, simply because there is so much concern about the UK leaving the European Union. We are looking for a reason to buy this pair, and we just don’t have it quite yet.