EUR/GBP Price Forecast March 6, 2018, Technical Analysis
The EUR/GBP pair pulled back a bit during trading on Monday but has found support at the psychologically important 0.89 handle. This is an area that should continue to attract attention, as it has in the past. I think that the upper proclivity of this market is still very much intact, and the results of a hung Parliament in Italy certainly could help as well, as it allays some of the fear that a lot of traders might have had. I also recognize that the British pound could be soft due to uncertainty as well, and the longer-term attitude to this market has dictated a bit of a rally anyways. I think that the 0.88 level underneath continues to be the “floor” in the market, so any move towards that area should attract value hunters.
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I think that this pair will continue to grind around in this general vicinity until we get some type of clarity out of the negotiations between London and Brussels, which seemed to be dragging on forever. Ultimately, we will get a longer-term move, but clearly right now we are nowhere near getting it. I think that the top of the overall consolidation remains at the 0.90 level, so a break above there would be a very significant turn of events, but unlikely until we get the clarity that the markets are desperately needs.