EUR/GBP continues consolidation after a negative week

The EUR/GBP pair has been a bit negative over the previous week, and it looks as if we are going to continue to see consolidation overall as the 0.87 level has been the bottom of the range. The 0.87 level be broken to the downside would be negative, perhaps sending the market as low as 0.84, but at this point I think that we still have a bit of fight left in this pair, although the British pound is starting to be favored a bit as it looks likely that the Bank of England will have to raise interest rates. However, I think the ECB is going to step away from quantitative easing as well, so I think we continue to see a lot of noise.

The market will continue to be very noisy due to the negotiations between the European Union and the United Kingdom as well. I think that the market is probably one that will continue to be difficult to trade longer term, so I think that looking for shorter-term setups will probably work out the past. I think that going back and forth with a range bound system will probably be the best way to go about it, and this is a “rinse and repeat” type of situation, at least until we get some type of either break down or break out. It looks as if the markets are still somewhat indecisive, so I like the idea of using shorter-term charts to take advantage of this situation. For the longer-term trader, there are probably better markets to be involved in.