EUR/GBP Forecast June 20, 2017, Technical Analysis

The EUR/GBP pair fell slightly during the day on Monday, reaching down to the 0.725 level. Bouncing off of that level sent this market back towards the 0.8775 level above. I believe that the 0.88 handle above is a target, and a significant amount of resistance. Looking at the longer-term chart, you can see that there is a gap from several sessions ago, and that should offer quite a bit of support. That gap is a very bullish sign, but we have not filled that gap. We may have to drop all the way down to the bottom of it to find longer-term buying opportunities. If we did break above the 0.88 handle, the market should be ready to go to the 0.8850 level, and then eventually the 0.90 level as well.
I believe that this market continues to be very choppy, as the market continues to pay attention to the negotiations going on between the British and the European Union. The market should continue to be choppy because of that, but at the end of the day it will be headlines that move this market more than anything else as people are trying to figure out what’s going to happen next. There is quite a bit of time to go though, so I think that the choppiness is here to stay, at least for several months, if not a couple of years.
Longer-term, the market is most certainly in a significant uptrend, so I do favor buying this pair when given the chance. If we breakdown below the gap and continued even lower, I might be a seller at that point, as it would show a significant drop in bullish pressure, and a significant change in the attitude of the market overall.