EUR/GBP Forecast June 2, 2017, Technical Analysis

The EUR/GBP pair initially tried to rally during the day on Thursday, and even managed to peek above the top of the downtrend line. However, we broke down significantly from there, and it now looks as if the market isn’t ready to do anything yet. I still believe in the upward momentum though, but clearly we are going to have a serious fight on our hands when it comes to breaking out above this resistance barrier, which sends the market much higher. I don’t have any interest in selling quite yet, I believe that the buyers are most certainly tenacious enough to get involved again. I can also make an argument for a bit of a trend line holding, somewhere near the 0.8680 level. Remember, this market tends to move rather slowly, so pay grind is probably what I would expect to the upside.
A possible shelter from the jobs number
The one nice thing about this pair on nonfarm payroll Friday is that it is sheltered from the American jobs number. After all, the EUR and the GBP tend to move in the same direction against the US dollar after the announcement, so that leaves this more of a pure “non-dollar play.” That might be exactly what you need to do during the session on Friday, to stay away from all of the trouble that is possible. I believe that now that we have seen a bit of a pullback, it might be value just waiting to be taken advantage of. The market breaking out to the upside should send the pair looking for the 0.88 handle, and then eventually the 0.90 level. Currently, it appears that the buyers still run the market going forward, and patience will continue to be needed.