The former Ukip leader weighed in on the progress made by the Brexit Secretary and the EU negotiator during the third round of negotiations in Brussels.
Talking on his LBC show, Mr Farage discussed a perceived change of tone in Mr Barnier.
He said: “That’s the first time I’ve sensed the change of tone in these negotiations.
“Suddenly Davis, to me, was looking not just like the good guy but looking like the better negotiator in many many ways.”
Mr Farage said the EU’s chief negotiator appeared rather irritable during the conference, a possible sign of major change in the process.
He said: “My observation was that Barnier – the normally suave, sophisticated Monsieur Barnier – was actually pretty tetchy.
“I almost got the feeling at times that he was perhaps boxed in by the negotiating position that he’s been given by the European Commission itself.”
The British MEP claimed the change in Mr Barnier’s bearing could indicate the UK has gained the upper hand over Brexit.
He said: “Davis, in a way, did land a little bit of a blow because he said that the European Union needed to be more imaginative and more flexible in its approach.
“I kind of thought that Barnier looked at that and thought rationally: ‘You know what? Davis is probably right’.
Mr Davis said at the press conference: “Our discussions this week have exposed yet again that the UK’s approach is substantially more flexible and pragmatic than that of the EU as it avoids unnecessary disruption for businesses and consumers.”