EUR/GBP forecast for 2018

The EUR / GBP pair was quite volatile over the past few months, but that should not surprise anyone, given the political events and headlines related to the London-Brussels talks. The December candle forms a hammer, but it is followed by a shooting star. With that in mind, upward movements are becoming more difficult and limited, but nevertheless, in my opinion, the EU will provide investors and traders with more security and stability than all of Britain's and Brexit's unknowns. This does not mean that the market will be easier to raise, so probably most of the early next year will be trading around levels 0.88 and 0.90.

If there is a break above 0.90, and most likely there will be a market free to rise to 0.93, which is the peak this year.

Under the alternative scenario we will witness a break at the bottom of the December Candle, which will send the pair to a new test at the bottom of 0.8325.

I expect the market to be very tricky, with no clear direction or so-called "choppy", but if we follow our trading strategies properly, we can take advantage of the overall bullish picture and of course the Brexit negotiations. Large market players and speculators speak of the pair's parity, but it is not known whether this is achievable next year.

Jr Trader Alexander Kumanov

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