EUR/GBP Forecast June 7, 2017, Technical Analysis

The EUR/GBP pair fell slightly during the day at the open on Tuesday, but found support yet again at the 0.87 level as it appears the buyers are willing to jump in and start buying yet again every time we reached towards that area. But I also see a significant amount of resistance at the 0.750 level so I think this is what the market will do between now and the end of the session on Thursday, simply grind back and forth. If you think about it, it makes quite a bit of sense as the Thursday session features the ECB Monetary Policy Statement, while the session also includes the UK election. There are a lot of things going back and forth in this market place, and because of that it makes sense that we would simply churn back and forth as there is no certainty between now and then.
I believe that scalping might be one way to trade this market over the next couple of sessions, but when I look at the longer-term charts it still seems to favor the upside. That’s not to say it’s going to be an easy trade, but I think if we can break above the 0.8760 level, the market will then be free to go much higher. I suspect this will happen, but I do not know when that will happen. I think that the choppiness will continue going forward as well, because not only do we have these couple of significant announcements, we then should deal with the noise coming out of the negotiations between the United Kingdom and the European Union on the exit. I think choppiness is going to be something that you can count on for at least another year in this market.