EUR/GBP Forecast July 24, 2017, Technical Analysis

The EUR/GBP pair went sideways initially during the day on Friday but found the 24-hour exponential moving average strong enough to cause a bit of dynamic support as the market when looking for the 0.90 level. That is a large, round, psychologically significant number, and of course an area that has seen a lot of interest previously. I think if we can break above there, the market then goes to the 0.92 level after that. Between now and then, I would expect the pullbacks offer buying opportunities as we have seen a significant amount of bullish pressure on Thursday, and of course we still have the negotiations between the United Kingdom and the European Union which tends to favor the European Union, at least as far as the market see it currently.
The 0.89 level
I believe that the 0.89 level below will be a bit of a “floor” in the market, as we continue to see quite a bit of interest in that area. A pull back to there would have me becoming very aggressive in my buying of the EUR, as I believe that the British pound still has a bit to pull back in order to find enough value against the US dollar, which of course is a main measurement. Breaking above the 0.90 level will be difficult, but once it happens, I believe that the buyers will come flooding into this market as it is such an obvious area to pay attention to. We could go as high as parity, but that will be very difficult to achieve anytime soon, it will probably be a long and drawn out process over the next several years as this pair does not tend to move very quickly as history shows.
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