EUR/GBP Price Forecast February 20, 2018, Technical Analysis

The EUR/GBP pair has rallied a bit during the early part of Monday, suggesting that we are going to go looking towards the highs again at the 0.89 level. The market has been rather volatile as of late, but that’s to be expected as we continue to go through negotiations between the European Union and the United Kingdom. I think that’s going to be the theme for most of this year: choppiness and back and forth trading. Ultimately, I do believe that eventually we find reason enough to break out to the upside, mainly if nothing else because we get certainty, and that is always good for an underlying trend. However, if we were to break down below the 0.88 level again, that could have this market looking for the 0.8750 level next.

I move above the 0.89 level, there has been significant selling pressure near the 0.90 level, which was the top of the overall consolidation for quite some time. A break above there sends the market looking for the all-time highs at the 0.93 level, which I do think will happen eventually. In the meantime, expect a lot of noise and understand that the volatility will continue to be an issue, but in the end the uptrend is still intact, and stability will be favored over the unknown quantities of the British future.

Economic Calendar