EUR/GBP Price Forecast November 13, 2017, Technical Analysis

The EUR/GBP pair went sideways at the beginning of the session on Friday, but then rolled over to test the 0.88 level underneath. That’s an area that has been nice and supportive as of late, and has a certain amount of significance on longer-term charts. I believe that the buyers will more than likely come back into play near this area, so I’m looking for a reason to go long. When you look at the weekly chart, the previous week was a hammer, and this week, although less than impressive, has not violated that hammer. Because of this, I suspect that we are going to stay within the consolidation between the 0.88 level on the bottom, and the 0.90 level on the top. I think that we are getting close to a buying area, and therefore I’m looking for any signs of support or a bounce that I can take advantage of.
I believe that this pair will continue to favor the upside, as traders prefer the stability of the European Union over whatever will happen next in the United Kingdom after the split. I believe that the longer-term uptrend will continue, and that eventually we could break above the 0.90 level, but in the meantime, I think that consolidation makes a significant amount of sense as we have struggled to break out of this region over the last month. This pair can move rather slow, so patience will be needed to take advantage of this move, but I think that we are most certainly finding an area just below that should be a nice opportunity to pick up value, as the Euro has gotten a bit cheap. I believe that once we do get a little bit of upward momentum, adding on dips could be the way to go.