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EUR/GBP forecast for the week of February 26, 2018, Technical Analysis

Christopher Lewis
Updated
The EUR/GBP pair went back and forth during the course of the week, as we continue to dance around the 0.88 level. Ultimately, I think that we will eventually break out to the upside, but currently we are consolidating overall, and I think that will continue to be the story for a while.

The EUR/GBP pair has dropped a bit during the course of the week, reaching towards the 0.88 level. That’s an area that has been essentially for value over the last several months, and I don’t see anything changing in the short term. As you can see I have a lavender box on the chart, and I think that it shows that there is plenty of support near the 0.87 level underneath, with the 0.90 level above being resistance. Longer-term traders are going to continue to struggle to find some type of footing for a huge move, but I do believe that eventually we will find buyers in this market.

For the time being, I think that trading this market from a short-term back and forth type of range bound system is probably the way to go. After all, there isn’t a lot of room for maneuvering when long-term trading, especially if you are one who waits for some type of candlestick confirmation. This will continue to be the epicenter of a lot of noise, especially considering that we have the negotiations between Brussels and London continuing, and that of course will cause a lot of headline risk. I believe that the markets will continue to be noisy, but eventually we will get some type of clarity that allows the market to make a longer-term decision, giving us an opportunity to place a longer-term trade with confidence.

EUR/GBP Video 26.02.18

This article was originally posted on FX Empire

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