EUR/GBP Forecast July 4, 2017, Technical Analysis

The EUR/GBP pair was volatile and choppy during the session on Monday, as we continue to bang around the 0.8775 level. The 0.88 level above is important from a longer-term perspective, and should continue to offer resistance. If we were to break above that level, then I believe that the market should continue to go much higher, perhaps reaching towards the 0.8850 level above. This market will continue to be very choppy, as it is the epicenter of currency traders and their attention to the conversations between Teresa May and the European Union. With the talk of Teresa May possibly walking away from the negotiations due to the potential exit costs, this could throw a monkey wrench into this market.
Watching a couple of levels
I’m watching a couple of levels in the market, and seeing how the market responds to them when we get to that level. If we can break above the 0.80 level on a daily close, I am willing to go ahead and start buying, especially above the 0.8820 level. Move above there should send the market towards the 0.8850 level, although it will probably be very choppy between here and there.
Alternately, if we break down below the 0.8750 level, the market should then continue to go much lower, perhaps the 0.87 handle, and then eventually the 0.86 level. Remember, this market has a higher ticket value than other ones, so it makes sense that traders should probably be looking at smaller positions as the headlines cross and the newswires can cost so much trouble. I do think that this will be one of the more interesting currency pairs to play over the next several months though, and therefore will keep an eye open on this chart always.