EUR/GBP Price Forecast February 14, 2018, Technical Analysis

The EUR/GBP pair has rallied again during the session on Tuesday, reaching towards the 0.89 level. That’s an area that should continue to offer some pushback, because it is essentially “fair value” of the longer-term consolidation between the 0.88 and the 0.90 level. Because of this, I think that we may get a little bit of noise around here, but I believe that the overall attitude of the market is to the upside, especially considering that there is going to be a lot of concerns about the British economy after they split from the European Union.

This isn’t to say that we will go higher from here, and in fact I would not be surprised at all to see a short-term pullback to build up the necessary momentum to rally again. I think that eventually we will go above the 0.90 level to continue even higher, perhaps reaching towards the highs at the 0.93 level. There are a lot of reasons to think that we will rally towards that area, not the least of which is that the negotiations could continue to work against the United Kingdom over the longer term. Headlines of course will be a potential issue in this pair, and I believe that is something that will keep traders on their toes. After all, it won’t take much for a politician to spook the market with a few choice words during this process.

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