EUR/GBP Price Forecast November 22, 2017, Technical Analysis

The EUR/GBP pair has essentially gone back and forth during the trading session on Tuesday, hovering around the 0.8860 level. The market continues to be very difficult to deal with for many of my trading friends, as the choppiness is extraordinarily strong here. I think that if the market continues to drop from here, we will find plenty of support at the 0.88 level underneath, which has been important on longer-term charts as well. I think that a bounce from there makes a lot of sense, as it would be a continuation of the overall consolidation that we have seen for some time. Remember, most of what is driving this pair will be headlines coming out of both London and the European Union, circling around the idea of the breakaway of the United Kingdom from the European Union.
I think that ultimately, we will go higher, but concerns about the Germans not being able to form a coalition government could weigh upon the Euro itself. That makes sense for a move down to the 0.88 level as well, and then eventually I think find buyers as people realize that the Germans not forming a coalition government isn’t fatal. I also believe that there is support extending down below the 0.88 level as well, as it is more of a zone. I don’t think we will break above the 0.90 level though, at least not in the short term, as their far too many questions. However, we will eventually break above the 0.90 level, and extend to the 0.93 level given enough time, which has been the highs from the previous surge higher. Volatility continues, but with a longer-term upward bias as there is more clarity in the European Union and the United Kingdom.

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