EUR/GBP Price Forecast March 27, 2018, Technical Analysis

The EUR/GBP pair continues to be very noisy in general, but we are at the bottom of an overall consolidation area and have recently formed a hammer on the daily chart. This is a very bullish sign, and I think it tells us that the market is trying to go higher from here. Once we rally from here, the 0.88 level will be an obvious resistance level, but I also think that we can break above there as we have sliced through it so many times recently. The continuing saga between the United Kingdom and the European Union continues to be a major factor in this market, and unfortunately a lot of the news comes out of the mouths of politicians, which you can never calculate quite effectively. I think that headline risk is still very high for this pair, but since we are towards the bottom of the overall range, I suspect that the overall risk is more to the upside, at least in the short run.

EUR/GBP Video 27.03.18
If we were to break down below the hammer from last week, that would be a very negative sign and I would expect to see the 0.86 level targeted next. To the upside, I anticipate that somewhere near the 0.8950 level we will have a significant resistance barrier, so I think at this time it’s going to continue to be a “back and forth” type of marketplace, where you trade in a range bound strategy to make your profit. I’m not looking for a major move near term.