EUR/GBP Price Forecast November 23, 2017, Technical Analysis

The EUR/GBP pair has been choppy during the trading session on Wednesday, as we continue to see the market tried to turn around to the upside. Ultimately, I believe that pullbacks offer buying opportunities, and the 0.88 level underneath is massively supportive on the longer-term charts. I believe that we are essentially going through consolidation right now, meaning that we will go back towards the top of this range, at the 0.90 level above. A break above there should send this market towards the 0.93 level, as it is the recent high. I believe that a lot of traders will favor the European Union over the United Kingdom and the short-term, because there is more certainty with that region. The market has been in an uptrend for some time, and the pullbacks continue to be buying opportunities.
However, if we were to break down below the 0.88 handle, that would be very negative and send this market much lower, perhaps down to the 0.86 level first, as it is the next major support level underneath. In general though, I believe that we continue to go higher, and that we should have no issues finding buyers on these dips. Although this pair is going to be noisy, I prefer to go long in small increments to build up a larger position. With the choppiness that we have right now, there’s not a huge need to pile in immediately, and I believe that adding incrementally gives you the ability to take advantage of the trend, while protecting your account because of the choppiness. This pair does tend to grind away, so you need to be patient enough to trade it. If we do fall from here, I would look for supportive action near the 0.88 level to take advantage again. A breakdown below the 0.8750 level is the signal that the 0.88 level has given way.