EUR/GBP Forecast June 8, 2017, Technical Analysis

The EUR/GBP pair had a very negative session during the day on Wednesday, breaking below the 0.87 level during the latter part of the day. However, I think that this pair will probably be very difficult to deal with over the next 24 hours as we have a couple of major headlines coming out that will have a massive effect on the pair. The EUR will continue to be volatile in general, especially considering that the European Central Bank has an interest rate statement, and more importantly a press conference after that. The market will be paying special attention to whether the ECB is going to cut back on quantitative easing. If they do, that should be good for the EUR/GBP pair. However, we have even more news coming out that will move the market as well.
Probably best to stay away
One of the reasons I think it’s probably best to stay away from this pair is that the UK parliamentary elections are going on during the day, and that of course can cause quite a bit of volatility either in favor of the British pound, or against it. I think that this pair will be the epicenter of the Forex world today, and therefore could cause quite a bit of noise and trouble. In fact, I believe that it’s probably best to wait until we get a 24-hour reaction to this market and trade what we see on the daily chart.
I think that a lot of the consolidation that we have seen over the last several sessions should do with the market waiting to find out what happens in both Brussels and London, and as headlines come out during the day, we will see quite a bit of volatility. At this market looks like a great place to lose money.