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

The EUR/GBP pair has broken down during the week, reaching towards the 0.87 level. The 0.807 level has been supported more than once, and then I think that we will bounce from here and reach towards the 0.88 level, perhaps the 0.90 level. I believe that this market will continue to move around due to the negotiations between the European Union and the United Kingdom, and of course headlines could come across the wires to move this market in either direction at the drop of a hat. However, it must be said that we have broken to fresh, new lows for the past year, so I would anticipate that a breakdown is a real possibility. There’s a lot of noise between here and 0.83, but a breakdown below the bottom of the weekly candle for this past week would be reason enough to start shorting. Otherwise, I fully anticipate that we go back towards the 0.88 level, which has been a bit of a magnet for price.

EUR/GBP Video 26.03.18

Currently, it appears that the Bank of England is going to raise interest rates in May, and that of course helps the pound. However, at the same time there are a lot of concerns about the pound, because the economic outlook for Great Britain is a little less clear that it would be in the European Union, which is going to be more stable. On the other side of that coin though, the German economic numbers this past week weren’t exactly stellar. In other words, expect a lot of choppiness more than anything else.