EUR/GBP Price Forecast March 8, 2018, Technical Analysis

The EUR/GBP pair has broken down again during the Wednesday session, but has also found support at the 0.8925 level, it’s likely that the market will continue to go higher, perhaps reaching towards the 0.8950 level. A break above that level allows this market to go looking towards the 0.90 level above, which is the top of the overall consolidation area that we have seen more than once. The market breaking above there would free the move to the 0.93 level after that, but it’s likely that move would be very choppy and difficult to complete. It’s not that we won’t, it’s just that it will take a lot of pressure.
The alternate scenario is that we break down below the 0.8880 level, which allows this market to drop down to the 0.88 handle. I think at this point, it’s likely that the buyers are probably going to take control this market, least looking at the short-term charts. I see a lot of noise underneath, so it’s very likely that the pair will continue to see choppy conditions, but anybody who has traded this market for any length of time knows that it typically does chop around quite a bit. I think the market will eventually reach towards the 0.90 level, but it is going to be a very difficult situation for traders to take advantage of, because quite frankly it is an area that is very noisy. There are negotiations of course going on between the 2 economies, so headline risk will of course be out there as well.

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