EUR/GBP Forecast June 28, 2017, Technical Analysis

The EUR/GBP pair shone through the roof during the day on Tuesday, slicing through the 0.88 handle. The market was reacting to comments coming out of the ECB President Mario Draghi suggesting more hawkish rhetoric than initially thought. Because of this, the market looks as if it is ready to continue going to the upside, breaking above the 0.8850 level. In doing so, the market should then go to the 0.90 level after that. Short-term pullbacks continue to be supported near the 0.88 level underneath. With this in mind, I believe that we will continue to see buyers in this market, as the longer-term uptrend certainly helps, and value is to be found on pullbacks.
My longer-term target
My longer-term target is the 0.90 level, and I think we will reach their relatively soon. That’s an area that will be massively resistive though, and I expect to see quite a bit of noise. However, this is a market that has stronger pit value than other ones, so we don’t need to move is much to make the money necessary to be profitable longer term. I’m a buy on the dips type of traitor when it comes to this pair, and certainly we have seen that played out during the day on Tuesday. I have no interest in selling, and believe that the strong uptrend continues through the rest of the summer as we negotiate the exiting of the British from the European Union.