EUR/GBP Forecast June 6, 2017, Technical Analysis

The EUR/GBP pair fell during the trading session on Monday, reaching towards the 0.87 level. We found a bit of support there though, and with that in mind we could get a little bit of a bounce. This could be a very volatile week for this pair, because we have the ECB interest rate decision on Thursday, which is also the same day we get the UK parliamentary election going on. That will continue to make this a very choppy market going forward, as we await the results of both. Currently, when I look at the chart I recognize that there is a longer-term uptrend, so certainly it is easier to buy this pair than it is to sell it.
Fresh, new low?
On the attached hourly chart, you can see that we are trying to make a fresh, new low, and that of course would be a very negative sign, but as I said with the elections and the interest rate decision, we could get a massive shift in attitude, and in either direction. This is probably going to be the epicenter of volatility for currency traders during this week, and therefore small positions might be what you need to do to stay somewhat safe. Ultimately, by the time we get our weekly close, it should show a significant amount of clarity when it comes to where we are going next. Based upon longer-term chart, it appears that the buyers are in control but of course everything could change in a very short time span this Thursday. Between now and then, it’s likely that the markets will chop around and be difficult to keep your hands on as there is going to be so many moving parts over the next several sessions.
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