EUR/GBP Forecast June 1, 2017, Technical Analysis

The EUR GBP pair was very volatile during the day on Wednesday, as we tested the above downtrend line, but pulled back significantly enough to fall towards the open for the day. Because of this, I believe that we are trying to build up enough momentum to finally break out to the upside in go looking for the 0.88 level above, and then of course the 0.90 level after that. The market looks to be very strong longer-term, but there is a significant amount of noise just above that will continue to keep this market choppy. Keep in mind that this market does tend to move slowly, and of course with all the headlines coming out of the European Union and the United Kingdom, it’s likely that the market will focus on comments coming out of both Brussels and London, so having said that it’s likely that the markets will be very susceptible to outside influence.
However, the move seems obvious
It looks as if the move is obvious, so having said that I believe it’s only a matter of time before the rest of the market jumps into the fray and continues to push to the upside. I have no interest in trying to find this move, so I am going to be a buyer on a break out to the upside, or simply sit on the sidelines. Selling is very difficult to do, and it would take a significant amount of convincing for me to start shorting now. A move below the 0.86 handle could start to change my mind, but right now it looks as if the buyers are most certainly in control, and there’s nothing on this chart that suggests that’s changing in the short run as we have seen tenacity.