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STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

EUR/GBP Price forecast for the week of January 29, 2018, Technical Analysis

Christopher Lewis
Updated
The EUR/GBP pair broke down significantly during the week, but towards the end of the Friday session, we started to see strength again, and therefore formed a hammer.

The EUR/GBP pair broke down significantly during the week, breaking down rather rapidly. However, we have seen quite a bit of stubborn support underneath, and therefore have formed a bit of a hammer. The hammer of course is a very bullish sign, and if we can break above the top of the candlestick for the week, I think we will then start grinding towards the 0.90 level again. Remember, this pair is going to be very volatile, because there are a lot of headlines coming out of both the European Union and the United Kingdom. The negotiations continue to dominate the markets, but longer-term it looks as if there is a substantial support level in this general vicinity, so breaking down is going to be difficult.

If we do break to the upside, it’s going to be more of a “buy-and-hold” situation, or perhaps even a situation where you find yourself looking at an investment of sorts. You will have to deal with a lot of volatility, but I think given enough time the uptrend will continue. If it doesn’t, there is a lot of noise between here and the 0.82 level, so I don’t think that we are going to see any type of meltdown. The market will be choppy, so I think that a lot of people will be looking at short-term trades, not necessarily long-term ones. If you are a long-term trader, patience and of course perhaps scaling in will be the best way to trade this market in either direction that proves itself to be worthy.

EUR/GBP Video 29.01.18

This article was originally posted on FX Empire

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