The market has jumped around during the trading session, but at the end of the day it looks very likely that we will continue to be very range bound, but I think that the 0.88 level offers a significant amount of support psychologically based upon previous action. I think that if we can break above the 0.8850 level, the market should then go looking towards the 0.90 level above which has been massive resistance. Alternately, if we break down below the 0.8750 level, the market then should go looking towards the 0.86 level underneath, which has been massively supportive. I think this is essentially going to be a market that will reflect what we get out of the divorce agreement, so it makes a certain amount of sense that we continue to go sideways in this vicinity, as the situation is still very fluid. Because of this, I think that you need to wait until we get a breakout in one direction or the other to put significant money to play, but you could trade this market in a range bound matter if you can keep your trading position relatively small.
Be aware that this market is essentially emotionally driven currently, so I think being careful is probably the best thing you can do. Ultimately, this is a market that will eventually make up its mind, and when it does I think we will get a massive move. All things being equal, I suspect we will go higher, but obviously there are a lot of questions that need answered first.
EUR/GBP Video 08.12.17
This article was originally posted on FX Empire