EUR/GBP Price Forecast March 1, 2018, Technical Analysis

The EUR/GBP pair has rallied significantly as the British pound has been pummeled during the trading session. It looks as if the 0.8850 level is going to offer resistance, but I think it’s only a matter of time before we break out to the upside, perhaps reaching towards the 0.89 level. That is essentially “fair value” for the overall consolidation over the longer term, and I think that the market will continue to be very noisy, but I think buyers will continue to push to the upside. If we make a fresh, new low, then that is a very negative sign, but I think we are trying to form a bit of a base, and that bass looks relatively strong.

Obviously, there will be a lot of headlines out there that could move the market based upon the negotiations between the United Kingdom and the European Union, so the impulsive move that we have seen over the last couple of hours on this chart suggests to me that we are starting to see more impulsivity come into the market, which is a good thing as it gives us an opportunity to hang onto a larger move. I believe that the 0.90 level above is the “ceiling” in the market, and I think it’s going to be difficult to break above there, but I do think that we are going to try to get there given enough time. If we break down to a fresh, new low, then I think the market goes down to the 0.87 handle, perhaps even down to the 0.86 handle. Expect noisy trading conditions, but I do have an upward proclivity.

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