EUR/GBP Forecast October 13, 2017, Technical Analysis

The EUR/GBP pair exploded to the upside, breaking above the 0.90 level, but then pulled back rather significantly. I believe that the market will continue to go higher, and a break above the 0.90 level should send this market towards the 0.92 level above. Given enough time, I think we go to the 0.95 level and of course parity after that. That is the general consensus over the market wires, that we should find ourselves going to parity given enough time. That makes sense, because traders will be a bit skittish about owning the British pound, and although the Euro will have its own issues, at the end of the day it seems as if traders will be much more comfortable with the European Union, because at the very least it is somewhat stable. There are too many unknowns when it comes to the United Kingdom, so having said that it’s likely that the overall attitude of the market will continue to favor the uptrend.
Beyond that, this is a market that has been in an uptrend for quite some time, and I think it’s only a matter of time before that continues. The market should look at these pullbacks as buying opportunities, and therefore I’m willing to not only buy dips, but add to them as we accelerate to the upside in order to pyramid a larger position longer term. I believe that the 0.88 level underneath is the “floor” in the market, so I have no interest in shorting until we would break down below there significantly. I don’t see that happening in the short term, so this is essentially a “buy only” market for me. That being said, I do recognize that it is volatile, so it may take a bit of patience and wherewithal to hang on to the uptrend.