Yahoo Finance EUR/GBP Price forecast for the week of December 4, 2017, Technical Analysis
In general, when I look at this chart I recognize that we have been consolidating between the 0.88 level on the bottom, and the 0.90 level on the top. I believe that the market should continue to be very choppy, but from a longer-term standpoint I believe that we will continue to see bullish pressure. Even if we were to break down below the 0.88 level, somewhere near the 0.87 level we have the 61.8% Fibonacci retracement that could offer support as well from the move that we’ve made earlier this year. If we can break above the 0.90 level, then I think we will test the highs again near the 0.93 level.
In general, I believe that traders will continue to favor the European Union and its stability as compared to the United Kingdom and the unknown future. Don’t get me wrong, I’m not looking for some type of melt up in this market, but I recognize that the longer-term trend has favored the upside, and the simple fact is that the overall momentum continues to go with the buyers. Longer-term, I think that a lot of pundits are calling for parity, and that would make a significant amount of sense as the 2 economies are highly intertwined, and of course the concern in the United Kingdom will not abate anytime soon. Even once we get the divorce bill settled, the reality is that we don’t know exactly how the UK will respond economically speaking. It is not until we break down below the 0.83 level that I feel the uptrend is in serious trouble.
EUR/GBP Video 04.12.17
This article was originally posted on FX Empire
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