EUR/GBP Price Forecast February 8, 2018, Technical Analysis

The EUR/GBP pair has been sideways most of the day, continuing to find support below at the 0.8850 handle. I think that the market is going to go looking towards the 0.89 level, and then eventually the 0.90 level after that. I see a “hard floor” closer to the 0.88 handle, so pullbacks should find plenty of support to that level. This market has been very volatile as of late, and it’s likely that should continue as the negotiations between London and Brussels stretch out. I think that given enough time though, the market will continue the overall uptrend that we have seen for some time, and it looks likely that the move could be sudden once we get confirmation of a deal between the 2 entities.

Ultimately, if we break down below the 0.88 level, we would probably go looking towards the 0.8750 level, and then possibly 0.86 after that, which is a longer-term support level. I suspect that this is a market that can continue to be a short-term traders type of situation, as buying the dips continues to be the way a lot of players are doing this market.

I would play the short-term charts more than anything else, because we just don’t have the stability or more importantly the clarity to put money to work for a longer-term move. While I do prefer the upside, I recognize that we have a long way to go before we can simply “buy-and-hold.”