EUR/GBP Price Forecast December 15, 2017, Technical Analysis

The market continues to be very choppy, and I believe at this point the 0.88 level is likely to be the median at which the market is pivoting. I think that if we rally from here, we will probably have a significant amount of resistance at the 0.850 level, but if we can break above that level, it’s likely that we will continue to go much higher, perhaps reaching towards the 0.90 level above. In general, I think that the pair should continue to find plenty of buyers underneath, because of the longer-term aspect of the United Kingdom leaving the European Union. While I don’t think it’s catastrophic, and certainly the United Kingdom will survive, the reality is that traders like the stability of the EU over the unknowns coming out of the United Kingdom.

I think if we can break above the 0.90 level above, that then freezes market to go to the 0.93 handle after that. I think that the 0.8750 level below will be massively supportive, so if we were to break down below there I think the sellers would overwhelm the market. Currently though, even with the very soft Euro during the trading session on Tuesday, I think we will eventually find buyers to pick this market up yet again, as we continue to find plenty of resiliency in the uptrend that has been in effect for quite some time. In general, the volatility will continue based upon headlines, but longer-term I still believe in the upside overall.

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