EUR/GBP Forecast October 25, 2017, Technical Analysis

The EUR/GBP pair initially went sideways, but then skyrocketed to the upside. It looks as if the pair is going to go looking towards the 0.90 level above, which has quite a bit of noise surrounding it. I think if we can break above the 0.9025 level, the market should then go to the 0.92 level longer term. In the meantime, I suspect we are probably going back and forth and simply looking for scalping opportunities on short-term charts. Range bound strategies could be employed now, such as ones that use the castings, as this market tends to chop around anyway. Longer-term, I suspect that the market will probably continue to rally though, because quite frankly most traders are more comfortable with and intact European Union as opposed to the United Kingdom, which of course is going its own way. This is more or less going to be a confidence vote than anything else.
Even with that being the case, I expect a lot of volatility. I think it would be a most impossible to expect a significant move in one direction without serious amounts of noise and hiccups along the way. I think that the market still looks for parity eventually, but it’s going to take quite some time to get there. I have no interest in shorting until we break down below the 0.88 level, which doesn’t seem to be very likely considering we have reversed quite a bit of bearish pressure in the last 24 hours. It will be very noisy, but I think if you can trade short-term charts, you should do quite well in the next couple of sessions, as we are starting to approach a major resistance barrier. If you’re a longer-term trader, then of course you want to be long of the market.