Euro rallies against Sterling yet again

The EUR/GBP pair initially pulled back a bit during the session on Friday, showing signs of weakness initially, but then we turned around to show signs of strength. We reached towards the highs again, and it looks like we are ready to continue to go much higher. The 0.88 level underneath should be a bit of a “floor” in this market, and I think that we will more than likely go to the 0.90 level above, which is a major barrier on longer-term charts. We have recently shown an ascending triangle on the hourly chart, and we have broken above it. I believe that the market should continue to find plenty of buyers underneath, especially considering that the British pound has shown so much weakness.

The GBP/USD pair has broken through major support, just as the EUR/USD pair has. Because of this, the market is going to be a fight between 2 of the week or currencies that I’m following right now, and that can lead to a lot of erratic action as the market has a lot of crosscurrents.

The market should continue to go higher though, based upon what we have seen over the last couple of weeks, and of course the weekly chart. I don’t know that we can break above the 0.90 level, as it is so important. If we did though, that could send this market to the 0.92 level.