EUR/GBP Forecast July 11, 2017, Technical Analysis

The EUR/GBP pair had a volatile session on Monday, as we trade between the 0.8830 level on the bottom, and the 0.8855 level on the top. I think the market is trying to get a read on what’s going on with the proceedings between the European Union and the United Kingdom, and if that’s the case, we will continue to move on headlines. I think the market is probably difficult to trade, but I must believe that there is more of an upward bias than anything else. Because of this, I think that the short-term pullbacks will offer value the traders are willing to take advantage of. I would be especially interested in buying near the 0.8830 level, especially if we can continue to be a low volatility environment. Low volatility in this market is how it normally trades, so it’s a range bound traders type of situation.
Choppiness, yet slow-motion choppiness
I think what’s going to happen is we are going to see choppiness, but slow-motion as far as that is concerned. I believe that the choppiness is something that you can take advantage of, but you should be willing to remember that this pair doesn’t move that quick, which makes sense considering that the ticket value is twice as much as other pairs. I am bullish, but I also recognize that we need to find value on pullbacks to take advantage of that bullishness.