EUR/GBP Price Forecast February 9, 2018, Technical Analysis

The EUR/GBP pair broke down significantly during the day, slicing through the 0.88 level. That’s an area that has been supportive in the past, as well as resistive. The fact that we sliced through there is a negative sign, but I also recognize that there is plenty of support in this general vicinity. If we break down even lower though, I think that the 0.86 level will be targeted, as it was a massive support level. Longer-term, I believe that this market will continue to go higher, but obviously we need to build some confidence in the meantime. If we can break above the 0.88 level, the market should go higher, reaching towards the 0.89 level. Ultimately, I think that the market is probably one that you should avoid, unless of course we break down significantly. In the short term, I think that rallies will probably be an attempt to build up enough confidence and stability to go higher.

Because of this, for the next 24 hours I am going to sit on the sidelines and wait for some type of clarity. We should eventually get clarity, but after this type of shock it might take several days to build up the confidence necessary. Either way, I suspect it will be easier to trade the EUR and the GBP against other currencies than each other.