EUR/GBP Technical Analysis

The euro initially tried to rally against the British pound but turned around to show signs of weakness again. Ultimately, this is a market that I think is going to continue to be very choppy, and therefore, you have to look at it through the prism of a range-bound type of situation, with short-term pullbacks perhaps offering buying opportunities. The 0.8750 level is an area that previously had been significant resistance, so I think you have to look at it as market memory just waiting to happen in the form of support.

The 50-day EMA sits there as well, so that, of course, helps. I look at this as a market that gives us an opportunity on these dips to pick up cheap euros. I don’t look for an explosive move, but I do think the measured move of the previous consolidation, suggesting 0.89 as a target, is pretty reasonable, but this pair tends to move at a snail’s pace.

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