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EUR/GBP Price Forecast November 8, 2017, Technical Analysis

Christopher Lewis
Updated

The EUR/GBP pair initially went sideways on Tuesday, didn’t to the 0.88 handle, and then bounced somewhat significantly. The 61.8% Fibonacci retracement level and of course the large, round, psychologically significant number has held. By pulling back to the “golden mean”, it makes sense that value hunters have come back. Overall, I believe the traders will continue to favor to the upside when it comes to this market, because of the longer-term uptrend. We have broken above the 24-hour exponential moving average, and that of course has short-term traders going long also. I believe that we are going to go looking towards the 0.90 level over the longer term, but quite frankly it could take a while to get there. This pair does tend to move slowly, but I think the most important factor to pay attention to is that the Bank of England has suggested that interest rate hikes are going to be slower than originally thought. Couple that with the uncertainty of the UK leaving the European Union, and that should favor the upside in this market.

Not only do we technically look healthy, but you should keep in mind that most traders prefer stability over uncertainty, which the United Kingdom will lack stability in the minds of traders as we do not know what the divorce is going to look like. I believe that every time we pull back in this market, it should be a buying opportunity, although I do recognize that it is going to be very noisy. This is a market that is very likely to be driven by headlines, coming from both the London and Brussels over the next several months. This will be a noisy market, but quite frankly I think the buyers are going to take over again.

EUR/GBP Video 08.11.17

This article was originally posted on FX Empire

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