EUR/GBP Price Forecast November 14, 2017, Technical Analysis

The EUR/GBP pair gapped higher at the open on Monday, and then shot towards the 0.8925 level, an area that has been resistive in the recent past. We are starting to roll over from there, and at this point I think this means that we are going to go looking for value underneath. The British pound of course has its own issues, especially with Teresa May dealing with a bit of an uprising from some of her MPs underneath, and some type of no-confidence situation could hurt the British pound as we are starting to worry about negotiations between the United Kingdom and the European Union, and any lack of unity in the UK. In general, this is a market that continues to be choppy, but the 0.88 level underneath holding as support was very important. It is because of this that I am looking for a bounce to take advantage of as we will be trying to build up enough momentum to continue the up move.
If we were to break down below the 0.88 level, the market could breakdown to the 0.87 level. However, I think that it’s very important to stay above that level, and I think that we will. Because of this, I suspect that this is a “long only” pair in the short term, and that we will eventually go looking towards the 0.90 level above, which has been important in the past. A break above there sends this market towards the 0.93 level, and perhaps even an extended run towards the parity level. That of course is a very long-term projection, and one that I have seen other analysts calling for over the last couple of years. I don’t know if we get there, but certainly it looks likely that plenty of people are willing to try.