EUR/GBP Forecast June 19, 2017, Technical Analysis

The EUR/GBP pair initially fell on Friday, but found enough support near the 0.8720 level to turn things around and rally. However, we have not filled the gap completely, so I think we are more likely to drop than rise. I’m looking for signs of exhaustion or roll over to start selling, especially considering that the EUR/USD pair showing signs of resistance above, while the GBP/USD pair is looking bullish. With this being the case, makes sense that the market will continue to drop. However, if we did break above the 0.8 level, the market will then continue to go much higher. The bottom of the gap is near the 0.8650 level, so I think that is probably where the markets going to be aiming for over the next several sessions.
Hunting exhaustion
I believe in looking for exhaustion in the market, as it gives us an opportunity to pick up the British pound “on the cheap.” Longer-term, I think this market will turn around and go higher but it certainly looks as if there are plenty of reasons to think that the British pound is going to continue to grind higher, and that of course will have an effect on this market as the EUR/USD pair looks very volatile, and I think that the market should continue to take several different things into account, not the least of which will be the United Kingdom leaving the European Union, which of course this pair is the epicenter of as far as traders are concerned. Because of this, I expect choppiness and volatility, but in the short term like I said, I believe that the sellers will probably be in control, only to find the bottom of the gap to be very supportive once we reach it.