Yahoo Finance EUR/GBP Price forecast for the week of March 5, 2018, Technical Analysis
The EUR/GBP pair has been very noisy over the last several months but has been hanging in the same region for that entire time. This past week has been very bullish, but at this point nothing has changed. The 0.90 level above offers resistance, and I think if we can break above there for a weekly close, that would be a very bullish sign. At this point, I don’t think it’s very likely that we will do so, but I do keep the idea of that in the back of my head, so that I can take advantage of an explosive moved to the upside. The breaking of that level would send the market towards the 0.93 level above, which was the most recent high. I do think that happens eventually, but as long as the negotiations continue between London and Brussels, it’s going to be difficult to pick up the type of momentum.
I think that the 0.87 level underneath is the “floor”, and I find it very difficult to believe that we would break down below there. I think that the 0.87 level being broken would be a very negative sign, but I don’t think it’s going to happen anytime soon. This would involve some type of headlines crossing the wires out of the negotiations that would be very negative for the European Union. At this point, I do think that the buyers will have the upper hand, but it seems likely that short-term back and forth trading will continue to be a function of this market.
EUR/GBP Video 05.03.18
This article was originally posted on FX Empire
