EUR/GBP Price Forecast December 14, 2017, Technical Analysis

The EUR fell a bit during the trading session on Wednesday, but continues to find buyers just below the 0.88 handle. I think we are trying to form a bit of a base and possibly even a “floor” in the market heading into the later part of this week. If we can break above the 0.8850 level, the market should then go much higher, perhaps reaching towards the 0.90 level after that. That’s an area that has offered a significant amount of resistance in the past, so it will take a certain amount of momentum to break above there. Once we do, the market should go to the 0.93 level next. However, that’s not to say it will be easy, because there are a lot of noisy headlines just waiting to come out.

I believe that buying the dips continues to be the best way to deal with this market, and that we should eventually find plenty of reasons to go higher longer-term, as the stability and the European Union will be favored over the United Kingdom, although I think there is a strong argument to be made for investing in the United Kingdom in general. Overall, I believe that the buyers are very interested in this market, but there are a lot of headline risks in the short term that keep money somewhat stagnant. Building a position slowly is probably the best way to go.

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