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EUR/GBP Forecast: Euro Will Likely to Continue to See Support

Euro gains; EUR/GBP at key support. Value hunters eye 0.85 level, with potential swing trade opportunities. Technicals point to support at 0.85, resistance at 0.86.

  • Euro traders have seen the currency rally a bit during the training session on Tuesday, across the board.
  • Ultimately, one pair that I’m watching very closely as the EUR/GBP pair, due to the fact that it is at a region that is massive support, so therefore we need to pay close attention to it.
  • With that being said, you need to think about this through the prism of finding value, as the 0.85 level underneath has been crucial for longer-term traders.

EUR/GBP Forecast Today - 03/04: Euro Set for Support (Graph)

Looking at this chart, the 50-Day EMA suggests that there is a certain amount of support in this general vicinity, and of course we have the 200-Day EMA above is a very resistant level, near the 0.86 level. In general, this is a market that I think continues to see a lot of choppy volatility, but this could be setting up for a bigger move. Because of this, the market is likely to continue to see value hunters come in and try to deal with the support level, as longer-term traders may be looking for a bit of a swing trade.

Technical Analysis

Initially, the market did fall during the trading session on Tuesday, only to turn around and show signs of life. Ultimately, this is a market that I think it will probably continue to be noisy, but it certainly looks like we have a lot of support at that 0.85 level. The 0.85 level is likely to continue to offer a bit of a “floor the market”, and if we were to turn her in the breakdown below there, it would be absolutely horrific for the Euro itself.

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    If we can break above the 200-Day EMA above, then it opens up the possibility of a move to the 0.8750 above, which is an area that has offered a significant amount of resistance, and therefore it’s likely that we could see traders target for that move. If we were to break above there, then it really could set a precedent for much higher rates. That being said, keep in mind this market is very choppy, due to the fact that the 2 economies are so heavily intertwined.

    Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers in Europe to check out. 

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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