EUR/GBP Forecast October 24, 2017, Technical Analysis

The EUR/GBP pair drifted a bit lower during the day on Monday, continuing the downward pressure that we had seen from the previous session. The 0.90 level looks to be massively resistive at this point, but we are still in an uptrend. Looking at the weekly chart, we had formed a couple of shooting stars in a row, so we may need to drift down to the 0.88 level underneath. That level has been massively supportive in the past, so I think that it’s only a matter of time before the buyers would return. However, if we were to break down below that level things could get rather ugly rather quick. I think that the 0.86 level would be tested next, and then eventually the 0.85 level after that.
If we did break out to the upside, we could continue towards the 0.92 level, and then eventually the 0.95 handle. Ultimately, this is a market that continues to be very noisy, because of course there are a lot of headlines coming out of both London and Brussels. That of course can cause a lot of volatility as the market is very skittish, but it should be pointed out that lately it looks like we are starting to sour on the uptrend. It is because of this that I think short-term trading is about as good as it gets right now, but you should keep track of both the 0.90 level and the 0.88 level as they are going to be your guideposts as to which direction to trade in the future. In the meantime, it’s going to be very choppy and difficult navigating ahead. In fact, you may be better off staying on the sidelines for the next couple of sessions in this market.