EUR/GBP Price Forecast November 29, 2017, Technical Analysis

The EUR/GBP pair pulled back slightly during the trading session on Tuesday, reaching towards the 0.89 level underneath. We bounce from there to reach towards the 0.8950 level above, but had a bit of resistance in that region to struggle. If we can break above the highs of the Monday session, the market should then go to the 0.90 level above. A break above there allows the market to reach towards the 0.93 level, and that is my longer-term outlook for this market. I believe that buying dips continues to be the best way to trade this market as the European Union is going to continue to be thought of as more stable than the United Kingdom. I also believe that traders will be attracted to the EU as deteriorating conditions in the United Kingdom could cause the British pound to suffer against the EU.
A break above the 0.90 level would have the market looking for the highs at the 0.93 level, and many of the people that I talk to in the industry expect this market finally go to parity sometime during 2018. I suspect that probably is the truth, but there is going to be a lot of volatility in general, as headlines will continue to be an issue for this market, coming from both Brussels and London as we try to figure out what the break up between the 2 economies will be. It will continue to be a noisy affair, and therefore trading with smaller positions would make sense. The 0.89 level underneath is offering support in general, although a breakdown below there is not catastrophic as I see the 0.88 level underneath being the “floor” in the market. Adding slowly on your way up is probably the best way to go.