EUR/GBP Price Forecast December 1, 2017, Technical Analysis

The EUR/GBP pair was very volatile and choppy during the trading session on Thursday, testing the 0.88 level for support. I think given enough time, we should continue to go much higher, as this is the bottom of the overall consolidation for the last several months. If we can break above the 0.8850 level, the market should then go to the 0.90 level longer term, which is the major resistance barrier that the market has fought against several times. If we can finally break above the 0.90 level, then the market should go to the 0.93 level after that which of course was the overall highs that we had seen.
If we were to break down below the 0.750 level, I think at that point it would be a significant break down and could send the market looking for the 0.86 level underneath. That area was supportive as well, and I think that based upon what we have seen recently, it makes sense that the market continues to favor the upside due to the uncertainty in the United Kingdom as compared to the European Union. Both currencies are doing reasonably well, but traders tend to like certainty more than anything else, and that is part of what had recently seen the British pound higher, as people thought there was some type of solution to the divorce bill from the EU. That hasn’t panned out, so I think it’s only a matter of time before we turn around and rally in a market that has been bullish longer term anyway. In general, this should end up being a nice buying opportunity.