EUR/GBP Forecast June 15, 2017, Technical Analysis

The EUR/GBP pair initially fell on Wednesday, but found enough support near the 0.8750 level underneath to bounce and break above the 0.88 handle as a result. We then pulled back and tested the 0.88 handle for support, and as I write this, it looks very likely that the buyers are stepping back into the market. Because of this, I believe that we are going to continue the upward pressure, but if we were to break down below the 0.8750 level, the market will probably then go down and trying to fill the massive gap from a week ago.
Buying on the dips, adding slowly
I think the best thing that you can do in this market is to simply buy on the dips and add slowly. This is going to be a volatile market, because we have the entire situation of the United Kingdom leaving the European Union plaguing what happens in this pair. Because of this, I suspect that there will be a lot of volatility, but there is still most certainly an upward bias in the charge. I think that the 0.90 level is a reasonable target, and I would expect that to continue to be what the markets are looking for. Nonetheless, there’s always the alternate scenario, but I don’t really see what that is right now. We do have a Bank of England interest rate decision coming out today, so perhaps something in the statement will get people running from the British pound again. If that’s the case, then this market should do quite well, especially if the Federal Reserve looks dovish going forward as it should benefit the EUR. Ultimately, I think the buyers are probably still in control by the time all this noise is done.

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