EUR/GBP continues to be noisy, but is near major support

The EUR/GBP pair has fallen over the last several sessions, but I think that there is a certain amount of support near the 0.87 level that will continue to keep this market somewhat afloat. I think that it is only a matter of time before we bounced though, perhaps reaching back to the 0.88 level above. If we make a fresh, new low, I think that the 0.86 level would be targeted, possibly the 0.85 level. Keep in mind that this pair is highly sensitive to the headlines coming out of the United Kingdom and the European Union due to the negotiations between the economies.

I believe that this market has a major ceiling at the 0.90 level as well, so I think that the market will eventually try to get back to that level, but it is going to continue to be very noisy. I think that the market should continue to be one that you can buy on these dips, but it is going to be one that you should keep small positions on in, because the volatility that continues to be a mainstay of this market I think doesn’t change anytime soon. In fact, it’s not until we get a conclusion to negotiations between the UK and the EU that I think some sense of stability returns. I would start out slowly, but then add as time goes on and the market proves itself. Longer-term, I believe that this market will eventually make up its mind, and when it does we can become aggressive.