EUR/GBP Price Forecast January 10, 2018, Technical Analysis

The EUR/GBP pair continues to bounce around just above the 0.88 level, which has been supportive for some time, and I think that the market will probably continue to respect his general vicinity, but given enough time I recognize that the market is in an uptrend, and I believe that longer-term traders will be leaning towards the European Union, as it is going to be a bit more stable than the United Kingdom over the next several years. That’s not to say that the British pound is going to collapse, but I think it makes a lot of sense for the consolidation overall to continue, meaning that we could go to the 0.90 level above. That would be a simple bounce back to the highs that we have tested several times.

Longer-term, I anticipate breaking above the 0.90 level, which could send this market towards the highs at the 0.93 level. I know a lot of pundits are calling for parity over the longer term, but quite frankly it is taking quite a while to make that move. Because of this, I think parity is becoming less likely. However, the overall consolidation should continue, and a retest of the 0.93 level makes sense as well. If we were to break down below the 0.8750 level, then I could consider selling this market, but only for a couple of handles.

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