EUR/GBP Price forecast for the week of February 12, 2018, Technical Analysis

The EUR/GBP pair has been volatile yet again during the previous week, and on Friday took off to the upside. This isn’t much of a surprise though, we were close to the bottom of a range, and had formed a couple of hammers on the weekly chart at this level. The 0.88 level continues to bring in buyers. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 9:55 PM

This pair initially fell during the week, but as you can see, there seems to be plenty of buyers underneath the 0.88 level lifting this market higher. At the very least, they seem to be willing to keep it afloat. We have been in an uptrend for some time, and I look at 0.88 as a fulcrum for price. It’s clear that the market is waiting on some type of clarity out of the negotiations between London and Brussels, and this was highlighted on Friday as the pair took off to the upside in reaction to a British negotiator suggesting that there was still the possibility of walking away from a trade deal with the EU. However, the reaction was probably a bit overdone as it was more than likely posturing, and quite frankly they still have the World Trade Organization deals to fall back on. There will be a trade deal between these economies, whether they find one or not.

With this being said, I like buying dips in this pair, but I realize it’s difficult for the longer-term trader to deal with. This is more of a short-term trading opportunity, but if you are extraordinarily patient, you could wait for a resumption of the uptrend, but at this rate it’s hard to tell when that’s going to happen. I would be willing to bet that it’s not going to be until we get some type of deal.