EUR/GBP Price Forecast March 13, 2018, Technical Analysis

The EUR/GBP pair has gone sideways initially during the trading session on Monday, reaching down towards the 0.8850 level underneath. Below there, the market could go to the 0.88 handle. That level has been important more than once, and I think should continue to be. At this point, I look at the market as having a “floor” in that area. If we break down below that level, the market could move very rapidly due to a few choice words coming out of a politician’s mouth, so keep that in mind. I would keep my position size a bit small, and then add if it works out in my favor. I still favor the upside longer-term, but right now it looks as if we are going to test the 0.88 level for support.

I believe that the 0.90 level above is the “ceiling of this range, and I think it would take significant work to break above it. If we do, then I think the market goes to the 0.93 handle, which was the most recent all-time high. This market should continue to be very noisy but could offer plenty of opportunities if you are paying attention. Think of this more as a short-term trader’s type of market, longer-term move is probably won’t be available until we get some clarity and certainty out of the negotiations between London and Brussels. At this point, it’s hard to tell when that will happen, but clearly, we are moving closer to its being the case.

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