EUR/GBP Forecast October 11, 2017, Technical Analysis

The EUR/GBP pair went sideways during the day on Tuesday, bouncing around the 0.8930 level. This is a market that continues to see a lot of volatility, but I think we’re trying to build up a bit of a base at the 0.89 handle. I think that the market will continue to bounce from here, perhaps reaching towards the 0.90 level given enough time, I also recognize that the market is probably going to continue to find a lot of noise due to the negotiations between London and Brussels, with headlines being able to move the markets at any given moment. Because of that, I am very cautious when it comes to this currency pair, but I think that we should eventually find some type of bullish pressure that should continue to go higher. Ultimately, this is a market that has been in an uptrend for some time, mainly because of the confidence of the European Union stain somewhat stable, while we have to question what the outlook for the United Kingdom is. Member, traders prefer stability over chaos.
Given enough time, I suspect that the markets will continue to see noisy trading conditions, but I think as the market moves in your favor to the upside, you can and to your position, doing a bit of pyramiding to take advantage of the longer-term pressure. I believe that the market continues to offer plenty of opportunity, but being cautious is probably the most important thing you can do in a market that is going to be almost completely headline driven. If we break down below the 0.88 level, then I would be concerned, but until then I think that we are still favoring the upside longer-term, therefore I am looking for buying opportunities only.