EUR/GBP does nothing on Monday

When I look at the EUR/GBP pair, I recognize that if we can break above the 0.88 handle, we should be free to go higher, perhaps the 0.89 level after that. I recognize it’s also an area that could cause a bit of resistance and send this market back down to the 0.87 handle. This is a very difficult market to trade with large quantity though, because there are lot of headline risks out there as we continue to see the negotiation between the European Union and the United Kingdom. If we get some clarity, that obviously would change things, but it’s not until we know how things are going to turn out for the longer-term move that we can put money to work.

I believe that this is a marketplace that you can trade very slowly, because quite frankly it doesn’t move very quickly anyway. Use the 0.88 level as a trigger in either direction, as a break above there and perhaps even a daily close above there could send this market going higher. Otherwise, if we roll over and break down below the daily candle for the last couple of sessions, the market could roll over to the 0.87 handle at that point. I believe that this market will continue to be very noisy and very difficult. However, I think that eventually we will get some clarity that we can follow. In the meantime, even though we have struggled a bit, I recognize that we are still very much in the overall consolidation.