EUR/GBP Price Forecast March 2, 2018, Technical Analysis

The EUR/GBP pair has pulled back a bit during the trading session on Thursday, reaching down towards the 0.8833 handle. We bounced enough to form a bit of a hammer on the hourly chart though, so that’s a bullish sign. Especially bullish when you consider that it was the scene of previous resistance, so I think that the market may bounce and reach towards the 0.89 level over the longer term. There is a lot of noise in this market, mainly because of the negotiations going back and forth between London and Brussels, and I think that will continue to be the norm for this market.

Even if we break down from here, I believe that there is a significant amount of support at the 0.88 level underneath, a massive support level for the longer-term charts as well. I believe that the market will go to the 0.89 level, and break above there to reach towards the 0.90 level which is the top of the longer-term consolidation area. I think no matter what happens though, you can count on having a lot of noise in this market as there are so many moving pieces going on at the same time.

I have no interest in shorting this market, unless of course you make a fresh, new low, which would wipe out two lows underneath. I believe that if this happens, the market probably goes down to the 0.8750 level, and then possibly the 0.87 handle. I would add slowly as the trades work out in your favor.

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