EUR/GBP Forecast September 20, 2017, Technical Analysis

The EUR/GBP pair has been relatively quiet on Tuesday, as we continue to see the 0.88 level offer support. I believe that the British pound has gotten a bit ahead of itself, especially considering that most market participants believe that the European Union will continue to outperform the United Kingdom. Granted, it does look like the inflation numbers out of Great Britain are stronger than anticipated, but the longer-term uptrend probably has more to do with what happens next. I believe that the 0.88 level is an excellent opportunity to serve buying, but if we were to break down below the 0.8775 level, the market probably goes down to the 0.85 handle. On the other hand, if we can break above the 0.90 level, the longer-term uptrend should continue and I believe we will eventually go looking for parity.
Significant volatility
This pair tends to be very volatile, as it bounces around quite significantly. Remember, the pip value tends to be twice what a normal pair is, and I believe that the pair takes a bit of patience. Ultimately, I do believe in the upside, as it follows the longer-term uptrend, but we may have to be very careful in this general vicinity Again though, if we were to break down below the 0.8775 level, I should at that point assume that perhaps more weaknesses coming. It’s not a matter of if this market bounces, but rather when it does in my estimation. Because of the divorce from the European Union, it’s likely that there will be a lot of confusion when it comes to the markets, and it’s likely that the market eventually continues to go higher. Ultimately, this is a market that should offer the buyers plenty of opportunities ahead.