EUR/USD and GBP/USD Forecast - 29 November 2017

EUR/USD

Initially, the EUR/USD pair tried to rally during the Monday trading session but found the area above the 1.19 level to be a bit too resistive to continue. Because of this, we ended up breaking below the bottom of the shooting star from the Monday session, which of course is a classic signal to start selling. We touch the 50% Fibonacci retracement level near the 1.1850 level, drift a little bit lower, and started to find buyers again. I believe there’s going to be a bit of a floor at the 1.18 level anyway, as it is a 61.8% Fibonacci retracement level and could be the extension of a downtrend line on the daily chart. I think that if we get any type of negative news about the tax reform coming out of the United States, that should send this market higher.

EURUSD

GBP/USD

The British pound had a wild ride during the day, initially drifting lower, but then bouncing significantly to form a hammer at the 1.3333 level after word got out that perhaps a deal for the payment to the European Union for leaving had been reached. There are conflicting reports as I record this, so it’s difficult to tell what the truth is, as London has claimed that the reports were overblown. If that’s the case, we will probably continue to see a bit of stagnation. From a technical standpoint of you, if we can break above the top of the range for the day on Tuesday, I would be willing to start buying as the market should go looking towards the 1.35 level, and then eventually the 1.3650 handle. I believe that there is plenty of support below, and therefore aren’t interested in selling quite yet.

GBPUSD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.