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EUR/GBP Price forecast for the week of November 20, 2017, Technical Analysis

The EUR/GBP pair rallied significantly during the week, slicing just above the 0.90 level at one point. However, we turned around to break down and fall into the middle of the consolidation area that the market has been paying attention to for some time. The 0.88 level underneath is massive support, while the 0.90 level is massive resistance. If we can break above the top of the weekly candle, the market should continue to reach towards the 0.9350 level. Ultimately, the market is in a longer-term uptrend, and therefore I think that eventually we will find buyers jump in. Pullbacks continue to offer value the people are willing to take advantage of, and it looks as if the 0.88 level underneath will continue to be very important, and could keep this market higher. Markets will have a lot to think about after all.

Looking at this chart, it makes sense that we have struggled to find an impulsive move to the upside, because of the negotiations between London and Brussels, and of course the uncertainty that goes along with the United Kingdom leaving the European Union. I think that there is the possibility of headlines moving the market back and forth, and with traders not necessarily looking to the future of the United Kingdom with any type of certainty, we could continue to see the pair rally due to that as well. I believe that the market will continue the longer-term uptrend, but it’s going to take a while to see that continue. If we did breakdown below the 0.88 level on a weekly close, we could drop down a bit, even as low as 0.83 and remain in an uptrend. Expect noise, but favor the upside.

EUR/GBP Video 20.11.17

This article was originally posted on FX Empire

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