EUR/GBP Forecast May 5, 2017, Technical Analysis

The EUR/GBP pair rally during the day on Thursday as we continue to see quite a bit of volatility in this market. This pair tends to be very choppy in general, so it makes sense that we would continue the back and forth type of action. As you can see on the chart, I have drawn a triangle, which of course is the ascending type. That is a very bullish sign, and I think we are going to try to jump to the upside. The 0.85 level above should be the target, and a break above there would be a very bullish sign as the market reaches the 0.8530 level after that. I think that the ascending triangle suggests that the EUR will continue to gain against the British pound, but the markets continue to be very difficult.
Moving averages
On the chart, I also have the 24, the 48, and the 72 hour moving averages. They are starting to turn to the upside, so I think we’re going to see an attempt to break out sooner rather than later. I have no interest in shorting, as not only do we have plenty of support below, there is a gap that offers an idea of the market going long. We have recently seen quite a bit of indecision in the markets, and I think that will continue to be the case. Remember, the pip value in this pair is almost twice what the others are, so you don’t have to see as large of a move to make profits in this market. Today being the jobs number out of America could cause some volatility in this pair, but it should be much less than the other marketplaces. A slow grind higher is what I am expecting more than anything else.