EUR/GBP Price Forecast March 5, 2018, Technical Analysis

The EUR/GBP pair has rallied significantly during the trading session on Friday, reaching towards the 0.8950 level. This is an area that has shown a significant amount of noise, and therefore it makes sense that the markets will continue to bounce around this area, but I think that if we can break above here, we will go towards the top of the overall consolidation area, which extends to the 0.90 level above. That is an area that I think we will fail to break above anytime soon, as we have far too much in the way of noise coming out of the negotiations between London and Brussels, and therefore I think that eventually the sellers will return.

At this point, you have already missed the move higher. I think waiting for signs of exhaustion between here and the 0.90 level might be the trade going forward, thereby giving you an opportunity to take advantage of what has been a reliable consolidation range. If we did break above the 0.90 level, that’s fine because you have found plenty of reason to go long at that point as it becomes more of a “buy-and-hold” scenario. At that point, I think the market goes to the 0.93 level, which was the highs from several months ago.

We are bit overextended though, so having said that I think that the market rolling over makes a lot more sense not only from a short-term standpoint, but from a longer-term standpoint as well.

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