EUR/GBP Price Forecast November 28, 2017, Technical Analysis

The EUR/GBP pair drifted a bit lower during the trading session, as Monday ended up being relatively quiet. The 0.89 level underneath should be supportive, just as it was resistive on the way up. I believe in the longer-term uptrend anyway, which should send this market looking towards the 0.90 level above, as the market has been attracted to that price in the past. If we can break above there, then we are free to go much higher, specifically the 0.9350 level. The markets continue to see traders favor the Euro over the British pound, as there is more certainty in the EU and its future than the United Kingdom. The United Kingdom offering uncertainty will of course work against the value of its currency in contrast to the EUR.
I think that the market is going to eventually reach towards the parity level, which has been called for by many pundits over the last year. We were previously in an uptrend anyway, so by the United Kingdom leaving the European Union, that only increased the pressure to the upside. However, recently the European Central Bank has suggested that quantitative easing was going to be extended, albeit at a slower pace. That of course works against the value of the Euro in general, and I believe that the uptrend has been a bit slowed because of this, but ultimately should continue to be the case going forward. Remember, this pair has double the value per take almost, and that of course means that we don’t need as large of a move to profit. The 0.88 level underneath should continue to be the “floor” in the market, and if we can stay above there I believe that the uptrend is very much intact.