EUR/GBP Price Forecast March 20, 2018, Technical Analysis

The EUR/GBP pair has broken down during trading on Monday, as it was announced that there was a broad agreement between the European Union and the United Kingdom as to what the exit was going to look like. This was a lot of uncertainty in this pair, and that of course has been an influence for some time. If we can break above the 0.80 20 level though, that would reverse this entire move, and I think at that time the buyers will come back into the market. Otherwise, breaking below the 0.8750 level could send this market down to the 0.87 handle, and then eventually the 0.86 level which is even more supportive than the 0.88 level. In other words, no matter what happens next, it’s going to be messy.

I would pay attention to those levels and let them guide me, because quite frankly trying to figure out what’s going on in the minds of traders around the world with this particular market is going to be an issue as there are so many moving pieces. I think that we will eventually find reason enough to get some clarity in this market, but the next major obstacle will be deciding on what the relationship between the UK and the EU will be after the exit. Once we get that clarity, it should give us a lot of clarity in this marke