EUR/GBP Price Forecast March 7, 2018, Technical Analysis

The EUR/GBP pair has gone back and forth during the trading session on Tuesday, hanging about the 0.89 level. That’s an area that should continue to attract a lot of attention, perhaps causing the market to be very noisy. I think that if we can break down below the 0.8875 handle, the market probably drops down to the 0.88 level underneath. Ultimately, I think that the 0.90 level above is the massive resistance of the market should continue to continue to respect. I believe that the market is going to continue to be very choppy, and I believe that the trading scenario that you find yourself and should be short-term at best.

If we were to break down to a fresh, new low, then I think the market could unwind to the 0.8650 level, but that seems to be very unlikely. Otherwise, if we break above the 0.90 level, the market could go as high as 0.93, which is my longer-term target. However, I believe that the headline risk coming out of both Brussels and London will continue to make this market very difficult to deal with. I would use small position sizing at best, as we would continue to be vulnerable to sudden moves. Overall, I think that the market continues to be very difficult to deal with, so at this point many of you might step to the sidelines. Quite frankly, at this point I think if we move 30 or 40 pips, and urine profit, you may wish to take advantage of that.

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