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EUR/GBP Forecast: Euro Attempts to Continue Recovery Against Pound

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The EUR/GBP pair looks as if it is trying to continue its overall trajectory to the upside.
  • Ultimately, the market has fallen rather significantly only to turn around and show signs of life. The 0.84 level has been conquered again, so we can stay above your that would obviously be a very bullish sign.
  • If we can continue to go higher, then we could challenge the 50-Day EMA, which of course is a technical indicator that a lot of people would pay close attention to.
  • If we can break above that, then it’s likely that the market could go looking to the 0.85 level.

EUR/GBP Forecast Today - 22/07: EUR/GBP recovers (Chart)

Volatility of course is going to continue to be a major issue, and we have of course seen a lot of negativity overall. The market is most certainly in a very negative trend, and therefore I think we’ve got a situation where a lot of people will be looking at this as a potential issue, but it certainly is worth noting that the 0.84 level is a massive support level on the monthly chart, so we are most certainly in an area where you are going to see a lot of decisions asked.

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Euro, and the European Central Bank

The euro of course is moving based upon the recent statements coming out of the European Central Bank, and the fact that perhaps the central bank did not cut rates like a lot of people thought they with this past week. However, the question then becomes whether or not the euro is going to continue to strengthen. That of course is a completely different question, but I do believe that if the market were to rally from here and break above the 0.85 level, that would be a huge boon for the euro itself.

If we were to see the market breaks significantly lower, then we could see this pair trade all the way down to the 0.80 level. Because of this, I think you’ve got a scenario where buyers are trying to come in and pick up a bit of value, but even if we do turn things around here, it’s going to be more or less a grind to the upside.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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