EUR/GBP Price Forecast February 19, 2018, Technical Analysis

The EUR/GBP pair chop around during the trading session on Friday, which I think will continue to be a mainstay of this market as we have a lot of headline risk coming out of the negotiations between the 2 economies. At this point, we have recently broken down below an uptrend line and we could drift lower, but I think there’s a lot of support below as well. So, having said this, I think that any breakdown will be minor. Having said that, I also believe that any rally at this point will also be somewhat limited. I believe that the market has a hard “ceiling” at the 0.90 level. I think that the market will eventually make a move, but we need to get through the negotiations before we get clarity.

Ultimately, I believe that the markets will continue to go higher, continuing the overall uptrend that we have seen. However, I think that the market will be choppy even on the breakout, as this pair typically is. Remember, the pip value is almost double that Major pairs are. Because of this, you don’t need as big of a move to make the profits. I believe that we are essentially at the 0.89 level, an area that is essentially “fair value” of the overall consolidation area. Because of this, I would prefer to buy this market on a pullback.

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