EUR/GBP Forecast February 28, 2017, Technical Analysis

The EUR/GBP pair broke higher on Monday, clearing the 0.85 level. However, we are starting to see a bit of exhaustion near the 50-day exponential moving average, which has been a bit resistive as of late. At the first signs of exhaustion, I’m willing to start selling, as the market should then reach down to the 0.84 handle. I have no interest in buying this pair, at least not until we break above the 0.86 level on the daily close. Longer-term, this market looks as if it is trying to form a massive head and shoulders.