EUR/GBP Price Forecast February 6, 2018, Technical Analysis

The EUR/GBP pair has rallied rather stringently over the last couple of sessions, as we have seen buyers jump into this market yet again. This market will of course be very difficult and noisy over the next several weeks, if not months, as the negotiations between the European Union and the United Kingdom continue. I believe that this is going to be one of the more difficult currency pairs to trade, at least in the near term. However, given enough time I anticipate that the market will decide which direction to go once the negotiations are done, or at least it looks as if we are heading towards a resolution.

Longer-term, this pair had started to rally long before the vote to leave the European Union happen, so I suspect that will probably continue to be the case going forward. However, in the meantime it is going to be very noisy and difficult, so I also suspect that short-term trades are probably about as good as it gets. I would look at the 0.88 level as support now, with the 0.9 level above as the ultimate ceiling. In the middle, there’s the 0.89 level, which has offered itself as “fair value” as of late, and I think that the market is going to try to get back to that level over the next several candles. I suspect that pullbacks will be buying opportunities based upon value, but I’m not comfortable enough to hold this position for anything more than a quick scalp.

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