EUR/GBP Price Forecast March 21, 2018, Technical Analysis

The EUR/GBP pair has been decidedly negative for some time, and now that we got the basic outline of an agreement between the economies as to how Great Britain will leave the European Union, this could continue to favor the British pound, although I think there’s a lot of support underneath that comes into play. After all, longer-term problems could still present themselves, especially considering that the British are venturing into somewhat unknown territory. Traders could very well prefer the safety and known quantities of the European Union going forward, and this could continue to be what will drive this market in the future.

However, in the short term it’s not until we break above the 0.88 level that I think the market will be able to be bought with any type of confidence, as there is most certainly an area of concern in that region. I think that ultimately, the markets breaking above there could send in fresh money, but I think it might take some momentum building to make that happen. The market continues to be very noisy, and of course will move quite a bit on headlines, so keep that in mind as well. Ultimately, I think that the 0.86 level underneath could be the target if we make a fresh new low, so keep that in mind if momentum continues to reach towards the British pound.