Yahoo Finance EUR/GBP forecast for the week of October 23, 2017, Technical Analysis
The EUR/GBP pair initially tried to rally during the week, but as you can see ran into a bit of a want the 0.90 level. The British pound itself exploded against the US dollar several times, and it looks likely that we will continue to see a lot of volatility over here. The 0.88 level underneath should be supportive, but if we break down below there, the market should then go to the 0.85 handle, and then perhaps the 0.83 level after that. The shooting star that formed during the week was preceded by another shooting star, and that is of course a very negative sign. However, the 0.88 level has been massively important in the past, so I think that it’s going to be difficult to break down. Alternately, if we were to break above the 0.90 level, it’s likely that the market would continue to see buyers jump into this market as it would not only break above a resistance level, but would also break above the top of a couple of shooting stars, a very bullish sign indeed.
This is a market that will continue to be very noisy based upon headlines, especially considering that this is almost entirely driven by the negotiations between Brussels and London, which of course are fluid and there are going to be sudden and impulsive moves that you will need to deal with if you are involved. Longer-term, we have been in an uptrend, but quite frankly the last couple of weeks look a bit suspicious. Because of this, I think that the market should continue to be very difficult to hold onto for a longer-term trend, so I suspect that it’s probably the realm of short-term traders more than anything else right now.
EUR/GBP Video 23.10.17
This article was originally posted on FX Empire
