EUR/GBP Price Forecast February 2, 2018, Technical Analysis

The EUR/GBP pair initially drifted lower during the trading session on Thursday but found enough support near the 0.87 level to bounce again. We are showing signs of strength after this initial selloff, and that suggests that we are going to go higher. The 0.88 level is a target at this point, and I think if we can clear above there I think that the market could go towards the 0.89 level after that. Overall, this is a market that is going to continue to have a lot of noise in it, especially due to the negotiation between London and Brussels. Until this whole thing is sorted out, expected headlines to suddenly move the market in one direction or the other.

Ultimately, this is a market that I think should continue to be very noisy, but in general I think that we get an opportunity every time it pulls back, because we are in a longer-term uptrend. If we break down below the 0.87 level, then the market should then go down to the 0.86 level later. Volatility continues to be a major issue, so keep your trading position somewhat small until we get an impulsive move that presents itself longer term. I think that the market should continue to be noisy for the next several months, so although there will be plenty of opportunities, I believe that caution is probably the most important thing you can pay attention to.

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