EUR/GBP Forecast May 22, 2017, Technical Analysis

The EUR/GBP pair has been very choppy and range bound for quite some time, as you can see based upon the chart that I have presented ahead of you. The market looks to be consolidating in general, and this is something that you can take advantage of. We are currently in “no man’s land”, meaning fair value as we are in the middle of the range, with the exception of a brief false breakout. The market looks interesting though, because on the hourly chart we have formed a hammer at this level, so that suggests the perhaps were going to go higher, reaching towards the 0.88 level above.

Ground Zero

Never forget that this is “Ground Zero” when it comes to all the negotiations involving the United Kingdom leaving the European Union, so there are headlines from time to time that could come out and cause issues. Currently, looks as if the market is happy to tread water, and in this area, you could have nice trading opportunities from a back and forth perspective. The value of each tech in this market is almost twice what it is other major currency pairs, so you don’t need it to move massive amounts to make money. Keep that in mind, and be patient. Let this market do the work for you as it has already shown a proclivity to hang in this consolidation. All things being equal though, we have already try to break out to the upside so I think that’s probably what the market prefers, a bullish bias. That doesn’t mean will get the break out now, but it certainly looks as if it’s more likely to break out to the upside than the down once we finally do make our longer-term move.
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