EUR/GBP Price Forecast February 28, 2018, Technical Analysis

The EUR/GBP pair was choppy on Tuesday, although bullish. I believe that the market should then go to the 0.8850 level above, which is the next resistance barrier. I believe that the market will not only attract a lot of attention to that area but could bring in fresh buying if we can clear it to the upside. I believe that the 0.88 level underneath is going to be supportive, as it has been in the past. In fact, it was the bottom of the overall consolidation area for the last year, so it makes quite a bit of sense that it will attract noise. I believe that we will continue to see a lot of choppiness, mainly because of the headlines coming out of negotiation between the economies, and of course the occasional stupid thing coming out of a politician’s mouth. (The bane of my existence as a currency trader.)
I believe that this pair will eventually go higher, mainly because there will be more confidence and the European Union than the United Kingdom going into the future, and I think that we will probably go to the 0.93 level above which was the recent high. If we can break out above there, this pair could go much higher. Alternately, if we break down below the 0.750 level, the market is likely to continue to go much lower. I believe that the market will continue to be very noisy, so you need to be careful about putting too much money to work right away. Ultimately, you will be better served to add to winning position slowly, building a core position.

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