EUR/GBP Price Forecast November 10, 2017, Technical Analysis

The EUR/GBP pair rallied significantly after initially going sideways on Thursday. We have broken above the 0.8850 level, and it looks as if we are ready to continue to go to the upside again. The 0.8888 level offers minor resistance, but I see no reason as to why the market won’t be able to go to the highs that we had seen just a week ago. I believe the pullbacks should continue to find plenty of support, and that the 0.88 level will offer support yet again if we find ourselves falling. Keep in mind that this is a market that will be very volatile due to the breaking away from the European Union buying the United Kingdom, so sudden volatility could be something to expect. I still believe in the upside though, because certainty is something that traders like to search for, and there is more certainty in the European Union than the United Kingdom in the immediate future.
I believe that we are going to go towards the 0.90 level above, which has been a magnet for price more than once. If we can break above there, then the market is likely to go to the 0.93 level. I have no interest in shorting, least not until we would breakdown to a fresh, new low, essentially wiping out the recent rally. That would be the market completely ignoring Mark Carney suggesting that the Bank of England was on the sidelines for interest rate hikes in the near term. That was to happen, obviously something has changed drastically. I believe in buying dips, but I also believe in being very cautious with the size of trade positions as the choppiness could be quite extreme in the near term. Overall though, we remain in a strong uptrend longer term.