EUR/GBP Price Forecast March 9, 2018, Technical Analysis

The EUR/GBP pair has been noisy during trading on Thursday, bouncing around just above the 0.8920 handle. The market is very likely to see a lot of volatility, but that is something that is typical for this pair, as the economies are so highly intertwined. Add in this equation the fact that we are now looking at negotiations that can directly affect the behavior and outlook for both economies, and then makes sense that the market will be very noisy. At this point, I believe in the uptrend, but I also recognize that it is going to be very choppy and difficult. I believe that the 0.88 level underneath is the “floor.” That affects how I tried this market, because if we were to break down below that level, that would be extraordinarily negative sign.

There are serious headline risks in this pair due to the negotiation, so be advised that taking a position in this market does carry that potential issue with it. However, I think if you keep your position size reasonable, you can ride out a lot of the noise that tends to occur in this pair as of late. If we can clear the 0.90 level, the market then should go to the 0.93 level above, which has been the high that the market hit before a lot of this choppiness.

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