Euro continues to be very noisy against Sterling

The EUR/GBP pair went back and forth during the trading session on Thursday, but then broke down a bit as we continue to favor the British pound over the Euro, as we have so many issues when it comes to the Italians and of course ever increasing tensions of the trade front against the United States. Because of this, I think it makes sense that we will probably reach towards the 0.87 level underneath, which has been significant support. If we do turnaround from here, the 0.88 level continues to be massive resistance, and if we can clear that level then I think the market will probably go looking towards the 0.8850 level. However, this would more than likely involve some type of major problem with the British pound or the British economy itself. I think it’s only a matter of time before the sellers come back though.

It’s not necessarily a move that’s good to be easy to stomach, but I do think that selling is the best way to go, as we have been range bound for some time. I think that we need to keep the position somewhat small though, because there is a lot of volatility coming down the road, and that will continue to put a lot of nerves in this market. I think that the 0.87 level will be massive support though, so it’s can take something rather significant to break through there.