EUR/GBP Price Forecast March 22, 2018, Technical Analysis

The EUR/GBP pair has broken below the 0.88 level a couple of days ago, and the action on Wednesday suggests that we are going to continue to see a bit of downward pressure. This does not signify that we are going to see some type of melt down, rather that we will probably go looking towards the 0.87 level, and then eventually the 0.86 level which is massively supportive on longer-term charts. Obviously, this pair does tend to be very choppy in general, and with the negotiations going on between the economies, there’s likely to be a lot of headline risk. However, you don’t need this pair to move as far as other pairs, because the pip value is so strong.

I believe in selling the rallies will continue to be the way forward, unless we manage to break above the 0.88 level, which would be very positive for the market, obviously. At that point, I suspect that the buyers will come back in. In the meantime, I would anticipate a lot of choppiness with an overall downward proclivity, at least to the 0.86 level, where I think there’s an even bigger fight just waiting to happen. Headline risk of course is still going to be a major problem with this market, as politicians can and will say anything it any given time without regard to what happens in the financial markets. I think that some of the bullishness for the British pound continues, mainly because we have signs that progress is being made in the negotiations. Longer-term though, I think this pair probably find buyers.