Euro continues to bounce around against Sterling

You can see that the EUR/GBP pair initially fell during the session but turned around on Friday to show signs of life again. This would make sense obviously as we had recently seen such a bullish move. I think that the market continues to be very noisy, as we continue with the overall consolidation and of course negotiations. The weekly candle is a hammer though, so I suspect that we could get buyers coming in to pick up a bit of value on dips. If we can break above the highs from the Thursday session, extensively the top of the candle for the week, the market will then go looking towards the 0.89 level and then the 0.90 level after that.

Otherwise, if we break down below the hammer on the hourly chart, which is somewhere near the 0.8790 level, the market probably drops a bit lower, perhaps reaching towards the 0.8750 level. This is a market that is very choppy to say the least, as we continue to see the negotiations and of course the concerns as to whether either of these central banks can raise interest rates anytime soon. I believe that the market will find buyers though, and therefore if you are cautious enough, I think you could continue to go long of this market as we have seen such a change in attitude this week.