EUR/GBP Price Forecast December 26, 2017, Technical Analysis

BREAKING NEWS

US, China agree to slash tariffs to 10% for 90 days

The EUR/GBP pair was choppy during the trading session on Friday, but having said that it’s likely that a lot of noise in this market was probably due to commercial trading, not necessarily speculation. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:38 PM

The Euro did very little against the British pound during the trading session on Friday, as we continue to see this market grind sideways in general. That is due to the hesitation of traders put a lot of money into this pair as we continue with the negotiations between the European Union and the United Kingdom, and of course the lack of liquidity during this time a year. I believe that given enough time, this pair will go higher as traders will favor the European Union overall, as there is more stability in that economic block. I think that the market is going to go looking towards the 0.90 level above, which is the top of the consolidation that we have been in for some time.

If we break above the 0.90 level, the market should then go to the 0.93 level after that, which was the recent high. Pullbacks will continue to offer buying opportunities, as I believe that adding slowly is probably the best way to go. If we were to break down below the 0.8750 level, that could change things, perhaps sending this market down to the 0.86 handle, but I believe that’s the least likely of scenarios. Going forward, I know a lot of institutional traders are calling for a move to parity, which is a long way away, so therefore it could give us an opportunity for longer-term trade also. Currently, buying dips in the consolidation area that seems to be the best way to profit from the market, and I believe today will be more of the same.