EUR/GBP Price Forecast November 27, 2017, Technical Analysis

The EUR/GBP pair pulled back initially during the trading session on Friday, but found enough support near the 0.89 level to rally significantly and reach towards the 0.8950 handle. The 0.90 level above is the top of the overall consolidation, so it’s likely that we will struggle at that area again, but if we can rally above that level, the market should continue to go to the 0.93 level after that. Pullbacks of this point should continue to be nice buying opportunity as we have seen such strength in the EUR, and I believe that the uncertainty in the United Kingdom will continue to weigh against the British pound. I think that given enough time, the market should continue to be bullish, but we may have the occasional pullback offering an opportunity to pick up a bit of value.
I believe that the 0.88 level underneath is the bottom of the longer-term consolidation area, and that it is the floor in the market. If we did somehow break down below that level, then the market will unwind but right now it appears that the buyers are starting to take control, and certainly and upside surprises much more likely. Longer-term, most pundits that I speak to expect parity to be tested, and quite frankly I would be surprised if that happened. That’s something that will be for 2018, but in the meantime, we are trying to build up the necessary momentum to finally leave the 0.90 level in the rearview mirror. This will take a lot of work, so I believe a lot of choppiness and several pullbacks are in our future. By using these pullbacks, you can build up a large position to take advantage of the likely breakout that we will see