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The EUR/GBP pair has bounced significantly during early trading in Europe but looks to be rolling over a bit as the Americans come on board. Longer-term though, I do believe that we will find buyers underneath, and I think that the short-term pullback should offer a bit of value the traders will be willing to take advantage of. The 0.88 level underneath should continue to be important, even if we do break below it as a continues to offer both support and resistance every time we approach of. Longer-term, I believe that given enough time we will find enough buyers to continue to go higher, reaching towards the 0.90 level above, which has previously been the “fair value” level of the overall consolidation.
Expect a lot of noise, this is a market that will react to headlines coming out of both London and Brussels as we continue the overall negotiations between the European Union and the United Kingdom, and that will continue to be a major influence on where we go in the short term. Longer-term, I believe that the uptrend continues, so therefore I like buying dips as they occur, but I’m also very quick to take profits.
At this point, it dips should have me going long, perhaps looking to pick up about 30 pips. That’s okay though, because the value of the trade is much higher than it is in other currency pairs, so quite frankly 30 pips should feel more like 50 in another pair.
EUR/GBP Video 22.02.18
This article was originally posted on FX Empire