EUR/GBP Price Forecast January 16, 2018, Technical Analysis
The EUR/GBP pair was very noisy during the trading session on Monday, bouncing around the 0.89 level. I think if we can break above there significantly, then the market will probably go to the top of the recent consolidation area, the 0.90 level. That’s an area that is massive resistance, and I think it will be difficult for this. A break above there until we get some type of resolution from the negotiations between the United Kingdom and the European Union. Over the last several months, it’s been good money just waiting to happen based upon the 0.88 level on the bottom, and of course the 0.90 level on the top.
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I believe that this market will continue to be very noisy, so as we are essentially at “fair value”, it’s probably best to leave this market alone until we get some type of overbought or oversold condition that we can take advantage of. Ultimately, this is a market that will be one of the noisiest currency pairs out there, as we see so many different reasons to think that the market will move around. Both currencies are doing well against the US dollar, secant necessarily use the EUR/USD or GBP/USD markets as indicators right now either. In other words, I’m waiting to get to the outside of the consolidation area, and then trade in the opposite direction. Until then, it’s probably best to simply observe.