EUR/GBP Forecast June 30, 2017, Technical Analysis

The EUR/GBP pair went sideways initially on Thursday, as we continue to test the 0.88 level. It seems as if the market is very comfortable near this level, but as we got later into the session, we started to sell off just a bit. I think there is significant support below at the 0.8750 level, so I think the downside is probably somewhat limited. We may have a very calm session today, because both the British pound and the EUR have seen such volatility. After all, it’s almost impossible to go at full speed every day. I think the choppiness is indicative of what we may see over the next several months, as the negotiations proceed.
I think that the headlines coming out of both London and Brussels will continue to be the main focal point of this pair, which of course makes it susceptible to sudden changes in attitude. Random quotes, and rumors will probably abound as well, so the volatility in this pair could be extreme when compared to previous years. I still think were in a bit of an uptrend though, so break above the 0.8820 level has me buying and aiming for the 0.8860 level. This is a market that will be difficult to trade, but certainly will be a very important currency market to follow, not only for Forex traders, but for equity traders around the world. This is almost like a vote of confidence either for or against the European Union or the United Kingdom. In the long run, the market typically gets what it wants, and this might be the best place to figure out what it wants. Make sure to keep your stop loss orders tight, and your position size small the matter what you do.