EUR/GBP Forecast June 21, 2017, Technical Analysis

The EUR/GBP pair broke higher during the day on Tuesday, slicing above the 0.88 handle, showing signs of considerable strength. The British pound fell overall, and because of this we started seeing buyers jump into this market. I believe that the 0.88 level should offer support, and this pullback should be a buying opportunity. Given enough time, I anticipate that the market is going to go looking for the 0.8850 level. The market break above there would be a very bullish sign, sending the market towards the 0.90 level after that. I don’t think that it will be an easy move to make, but it seems to be the next one. Because of this, I’m looking forward to taking advantage of short-term pullbacks that show signs of support, and of course impulsive candles to the upside.

British pound weakness

I don’t know necessarily that this is anything more than a reflection of the weakness of the British pound, but nonetheless it doesn’t matter, because the profits are the same. Ultimately, this is a market that should continue to see pullbacks looked at as value. A break above the top of the 0.90 level would be massively bullish, perhaps sending this market to the parity level. I don’t think it’s going to happen anytime soon, but it is likely to be where the longer-term traders are aiming for. Ultimately, the gap that has been marked on the chart should send this market higher over the longer-term, but we could have a pullback through that area. Either way, longer-term it looks as if the market is favoring the upside, so keep that in mind when you place a trade. If we were to break down below the purple… On the chart, that would be a very negative sign.