Euro continues to grind higher against Sterling

The EUR/GBP pair rallied a bit during the trading session on Thursday but continues to see a bit of resistance. The market breaking to a fresh, new high could send this market towards the 0.89 level, an area that has been a bit of support and resistance in the past. Otherwise, we could turn around and break down towards the 0.8775 handle, which has offered a bit of support. I anticipate that this market will probably be somewhat quiet during the Friday session, because it will be driven by the EUR/USD and the GBP/USD movements in reaction to the jobs number. Those currency pairs tend to move in the same direction after these announcements, so it causes a lot of choppy and sideways action in this market.

I think that headlines of course will be a major driver of this pair, as we continue to see the negotiations between the United Kingdom and the European Union go forward. Having said that, when I look at the technical set up in this market, it appears that we are forming a bit of an ascending triangle, and that has me thinking that we will more than likely see positive momentum eventually pick up. However, you will need to be very patient in this market as it tends to grind more than anything else. That’s the nature of this market, a lot of sideways action with a sudden move occasionally.