EUR/GBP Price Forecast March 29, 2018, Technical Analysis

The EUR/GBP pair has gone back and forth during the trading session on Wednesday, showing signs of indecision as per usual. This market looks very likely to continue to be driven by headlines coming out of the potential negotiations between the European Union and the United Kingdom, and that of course is very difficult to trade, because it will be driven by potential headlines that will be unpredictable. Ultimately, this is a market that should be traded in small bits and pieces, but we have been consolidating over the longer term, and until we get some type of major change in the negotiations, I believe that we will continue to trade between the 0.87 level and the 0.90 level above.

As we are closer to the bottom of the overall consolidation area, I believe that it’s more likely to find buyers in this market right now than sellers. I look at this is a potential buying opportunity, and if we can clear the 0.80 level, the market is very likely to continue going higher, towards the 0.9 handle. If we did manage to break down below the 0.87 level on a daily close, at that point I think we would go to the 0.86 level, and then possibly the 0.85 level. However, I would mention that the 0.86 level underneath is massively supportive, so it’s very possible we could bounce from there as well. I think we continue to see a lot of choppiness and volatility, and therefore we need to be very cautious about the position size, and therefore only add once it has been clearly bullish or bearish and therefore you can continue to build confidence.