Euro chops against the British pound during Thursday trading

The EUR/GBP pair went back and forth during Thursday trading, as the Forex markets have been quiet during trading. This pair is especially vulnerable to sudden moves though, as it is more headline driven than many others. · FX Empire

Christopher Lewis

Updated Thu, Mar 29, 2018, 7:33 PM

The EUR/GBP pair went back and forth during the trading session on Thursday, as we continue to bounce around the 0.8750 level. The market does have more of an upward proclivity though, as we have been grinding away to the upside. I think that longer-term, the market is going to go looking towards the 0.88 level, but it’s difficult to get their based upon the choppiness that this pair has been in for some time. The market will course continue to be very susceptible to headlines coming out of the negotiations between the European Union and the United Kingdom, which of course can change at any moment. However, it does look as if we are making a certain amount of progress in the stocks, and that will help settle things down.

If we can break above the 0.88 level, the market should then go to the 0.89 level. The 0.87 level underneath is massive support, as it is the bottom of the overall consolidation area that we have been in for some time, just as the 0.90 level above is massive resistance. I believe that the market continues to respect these levels until we get the conclusion of the stocks, so now that we are getting closer to the end of the negotiations, we may have the market tried to “front run” what happens economically, but I believe that the market probably respects the bottom until then, so I think that the market is more likely to go higher than lower as we are closer to the bottom.