EUR/GBP pair remains in consolidation

The EUR/GBP pair has gone back and forth over the last several months, and I think that it will continue to do so until the negotiations involving the United Kingdom leaving the European Union are concluded. At that point, it’s likely that we could get some clarity for the next move. I think that this market continues to dance around the 0.88 handle, an area that has been important for several months. I think that the 0.87 level underneath is support, just as the 0.90 level above is resistance.

I think that this is a market that is probably best traded through the short-term charts, as there are so many headlines moving things around and more importantly: we have a well-defined range, something that I love trading on short-term charts. This is a market that is rather choppy under most conditions, so it makes sense that short-term back and forth type of trading is probably the way we go. I think that the market gives us an opportunity to scalp back and forth, as we are in an uptrend, but obviously don’t feel comfortable enough to continue the move higher. I think once we get some type of conclusion to these times, then we can get the longer-term move. In the meantime, you might as well take advantage of the very clear trend that we have been taken advantage of for some time. After all, one of the most important things that you need to know about trading the markets is taking what it offers you, and at this point it’s offering short-term back and forth trading.