EUR/GBP Price Forecast December 4, 2017, Technical Analysis

The EUR/GBP pair rallied significantly during the trading session on Friday only to pull back, but then rally again. It looks as if we are trying to form a base. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:04 PM

The EUR/GBP pair initially rallied on Friday, but found enough resistance near the 0.8850 level to roll over and fall towards the 0.88 handle again. As I write this, we are starting to see a significant rally in the EUR in general, so we could see a move above the vital 0.8850 level. At that point, I would be a buyer as I think it would be a confirmation of the supportive area just below, in the form of the 0.88 handle. I think that the market continues to be one that you can trade to the upside overall, but it’s likely that it will be choppy, and it also is likely that short-term pullbacks will occur quite often. This pullback could be thought of as opportunities to add to your position, but keep in mind that there will be a lot of choppiness as we get headlines coming from both London and Brussels that will move this market.

If we were to break down below the 0.8750 level, I think it would let the market reach towards the 0.86 level under that, which is an area that is massively supportive as well. That being said, I am a buyer in general and I think that given enough time will probably go looking towards the 0.90 level again, all we need at this point is some type of catalyst. Take your time, and add to your position as it works out in your favor. This pair tends to move rather slowly at times, but then again that’s part of what makes it a great pair to trade for those with less experience.