EUR/GBP Forecast June 5, 2017, Technical Analysis

The EUR/GBP pair saw a move higher to the upside, and it now looks as if we are going to continue to break out to the upside. Now that we have seen this impulsivity, the other thing that I would bring to the table is the fact that the downtrend line on the weekly chart has been broken, and it now seems as if this pair is going to go looking for the next logical area, the 0.88 handle. A break above their census market looking towards the 0.90 level after that, which of course is a large, round, psychologically significant number. There will be quite a bit of volatility between here and there, but I think it’s only a matter of time before buyers get involved when we dip as it represents value.
Headlines will continue to control the market
Keep in mind that the headlines coming out of the European Union and the United Kingdom will continue to move this market, and we could see sudden and violent reactions. As there is a lot of uncertainty when it comes to the United Kingdom leaving the European Union, it will probably go back and forth in response. The market continues to see an overall uptrend, but I also recognize that the volatility will possibly offer selling opportunities as well. I still believe that the easier to trade is to the upside though, so now that we have broken above this resistance, I believe that simply buying on the dips will probably be the simplest and easiest way to be involved in this market, but be aware that sudden shifts in sentiment are still a very serious concern and danger when it comes to trading this market.

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