EUR/GBP Price Forecast February 27, 2018, Technical Analysis

The EUR/GBP pair has been very noisy during trading on Monday, as we initially gapped lower, rallied to fill that gap, fell significantly as you would expect, but then exploded to the upside as the Americans came on board. By doing so, it looks like we are trying to form some type of base around the 0.88 handle, which is a significant level on longer-term charts. I think that turnaround that we have seen during the day signifies that we will probably continue to find plenty of momentum to the upside. I recognize that there is a lot of noise above, so this won’t necessarily be the easiest of moves to make, but the market has been consolidating overall for some time, and the 0.88 level tends to attract a lot of support in general.

Short-term pullback should continue to be buying opportunities, and I believe that the pair will continue to go higher, perhaps reaching towards the 0.8850 level, and then possibly the 0.89 level. I think that the market should continue to be very noisy, but if you are careful with your position size, you should be able to benefit from what has been the longer-term attitude of the market. Adding slowly as the market works out in your favor will continue to be the best way to trade this market, as there will be a lot of risk of headlines coming out of the negotiations between the economies.

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