EUR/GBP Price Forecast January 12, 2018, Technical Analysis

This pair has been reasonably reliable over the last several weeks, as we continue to negotiate the exit of the United Kingdom from the European Union. Because of this, there have been a lot of headline shocks from time to time that will move this market in both directions. I believe that the market is simply treading water and waiting to see how things turn out, but the longer-term attitude of this market is most certainly bullish. I look at pullbacks as buying opportunities, as I believe that eventually once things settle, people will look at the European Union is a safer place to be than the United Kingdom based upon the stability of the you. After all, the United Kingdom is going into the great unknown, but I think it’s a bit ridiculous to think that the UK is going to fall apart.

In general, I think that the market will remain volatile, but it just seems much easier to go long, although if you are quick enough you could short this market, but I would be much more careful doing that on signs of exhaustion. I believe the traders will preferred the stability of the EU longer term, so it makes sense that once we finally do get the major breakout, it will probably be to the upside and less of course the British can pull some type of coup at the negotiations.

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