EUR/GBP Price Forecast February 15, 2018, Technical Analysis

The EUR/GBP pair has been very noisy over the last 3 sessions, but we continue to grind higher. I think that is going to continue to be the overall attitude of this market, as we look for momentum to break above the 0.89 level. It will take a certain amount of momentum to finally break above the 0.89 level, as it is “fair value” of the overall consolidation that we have seen for the longer-term. Yes, we have broken below the 0.88 level at times, but I also recognize that the market has rallied significantly every time we break down below there. When you look at the longer-term consolidation, and the 0.90 level above was very resistive.

I believe that the 0.90 level above is going to be broken eventually, and once we do get above there the market should continue to go to the 0.93 handle. That’s an area that has sold off rather drastically, but I do think that eventually we will reach those levels again. Keep in mind that the negotiations between the European Union and the United Kingdom continue, and those of course will produce headlines occasionally that get people excited in this market. If we were to break down below here, I think that the 0.88 level will continue to offer a zone of support. That’s a key word there though: zone. Longer-term, I’m a buyer and not a seller, least not until we break down to fresh, new lows.

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