The EUR/GBP pair rallied during the day on Friday, but ran into a bit of resistance near the 0.8960 level. The market has rolled over a bit over the last couple of hours, as we are starting to run into a bit of resistance, but I think there is more than enough support underneath to continue to push this market to the upside. I think that the 0.90 level will be targeted next, and if we can break above there should send this market towards the 0.92 handle over the longer term. The 0.89 level underneath continues to be supportive though, so I do not think that we will break down below there. On the weekly chart, the market looks likely to recognize the 0.89 level as the “floor” in the market.
Buying dips
I believe that the market continues to be one that you can buy on dips, as a continues to favor the Euro overall. Both currencies have recently broken out against the US dollar, but there has been much more momentum in favor of the Euro currency, and that of course shows itself in this pair. Given enough time, the market should continue to be volatile but with an upward tilt. I have no interest in shorting, and I believe that once we break above the 0.90 level, buyers will become even more aggressive as it will be a major psychological break of resistance. If we were to break down below the 0.89 level, that would be extraordinarily bearish, and could change things in the short term.
EUR/GBP Video 31.7.17
This article was originally posted on FX Empire