Euro falls against Pound on Wednesday session

The EUR/GBP pair fell rather hard during trading on Wednesday, slicing through the 0.88 level again. However, I believe that the 0.88 level is essentially the middle point of overall consolidation, and that we are more than likely going to go back and forth around this level. I believe that the uncertainty surrounding the negotiations will continue to be a major thorn in the side in this pair. We also have the jobs number coming out tomorrow in America, and although it won’t affect this pair directly, pay attention to the EUR/USD and GBP/USD pairs, as a course they will have a certain amount of influence.

Ultimately, I think we break down below the 0.8775 handle, the market probably goes back to the 0.87 level again. On the other hand, if we break above the 0.8825 handle, then we could go higher, perhaps towards the 0.89 level, an area that has been important more than once. I do recognize that there is a lot of noise just waiting to happen, so I would keep my position short term, and of course small overall as the volatility can cause major issues. With that being the case, this is a good market to range trade more than anything else, so keep that in mind and use stochastic oscillator indicators or something like that.