EUR/GBP Price Forecast December 19, 2017, Technical Analysis

The EUR/GBP pair has been choppy during the trading session on Monday, reaching down towards the 0.88 handle, only to turn around and bounce from there. This is an area that has been important on longer-term charts, and should remain important going forward. I think that we will try to reach towards the 0.8850 level, and if we can break above that level, it’s likely that we continue to go towards the psychologically and structurally important 0.90 level above. That level is the top of the overall consolidation, and would be my target on a bullish move.

Alternately, we could pull back in breakdown below the 0.8760 level, and then perhaps go looking towards the 0.86 handle. This would be a bit countertrend, but at the end of the day it would be possible as we have reached as low as that level over the last couple of years. I think that the sideways action overall will continue though, as we have the headlines coming out of the negotiation between the United Kingdom and the European Union. At the end of the day, this will be headline driven pair, but I think that longer-term we will continue to favor the upside because not only are we structurally in an uptrend, but we also have more certainty in the European Union going forward as there will be a lot of questions about the United Kingdom. At the end of the day though, I suspect that a lot of traders will try to push this pair towards parity, only because that’s a level that’s been yelled for over the last several months.

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