The EUR/GBP pair had a fairly positive session during the day on Tuesday, and even managed to break above the top of the shooting star from the Monday session. That of course is a very bullish sign, but at the end of the day we are most certainly in a massively downtrend, so I’m not willing to go against that.
Ultimately, I feel that this is simply going to be a nice opportunity to buying the British pound essentially what is “on the cheap.” I believe that the Euro has far too many issues to consider owning it, and that although the British pound probably isn’t exactly going to skyrocket in value either, it should continue to do better than the Euro overall and at the end of the day that’s all that matters when it comes to trading Forex. It’s a simple as the British pound should continue to outperform the Euro overall.
Continued downtrend should head to major levels
The continued downtrend should continue to assert itself, and as a result I believe that we are heading down to the 0.70 level as it is the next major handle. It’s difficult for me to imagine that this market is certainly going to skyrocket in value, so I think that anytime that we rally it’s going to be a gift of sorts. If we can form some type of resistant candle, we are more than willing to sell at those point in time. The market should continue to go lower but I think at that this pair has the tendency to grind, and I think that is probably what we are going to see next.
Keep in mind that the British pound could be moving somewhat significantly today though, because the MPC minutes come out, as well as the results of the vote. With that, we could get buying and selling the British pound overall, and that could make today a little bit more interesting than the overall attitude of the market over the next couple of weeks, but I still believe that we ultimately go lower.
