EUR/GBP Price Forecast March 23, 2018, Technical Analysis

This pair has taken on a completely different tone recently. After breaking down below the 0.88 level, we fell, bounced to test the 0.88 level, and then fell resistance there as well. I think we may be in the midst of a potential trend change, but these tend to be very noisy and messy to say the least. Because of this, I am a bit cautious about putting a lot of money to work. However, it most certainly looks as if the downside is going to win the fight. That being said, there’s an easy signal to start buying, that would be breaking above the 0.88 level again. Until that happens, I suspect that it’s going to be a “sell the rallies” type of market.

We did see a significant bounce after the economic announcement coming out of the UK, but I suspect that will end up being a whole lot of nothing by the time things get figured out. The 0.8650 level offered a bit of support, but I think that on signs of exhaustion, the sellers will come right back into this market and push lower. The 0.86 level is much more significant support than we have tested, so it makes sense that the market will be itching to go down to that level. If we can break above the 0.88 handle, I would not be a buyer until we get a daily close above that level, and then at that point I would anticipate a return to the 0.89 handle.