Euro climbs against British pound during the week

The EUR/GBP pair rallied significantly during the week, using the 0.8650 level as support. The 0.88 level above has offered resistance, and if we can break above there, the market should then go to the 0.90 level. However, when I look at this chart it’s easy to see that we are drifting a bit lower. The 0.8650 level underneath is previous resistance, so it should be support again. I think that a breakdown below that level is probably the easier trade to take, as it would be a clear break of support. Longer-term, I think that this market probably will rally but I think a pullback to the 0.83 level is entirely possible.

Longer-term, if we can break above the 0.90 level the market will continue to go much higher. We are in a strong uptrend, but it has been very choppy which of course is logical given that the United States and the European Union have been negotiating the split. In other words, this is a very fluid situation and could change very rapidly. However, when you look at the daily charts, it looks likely that we are going to continue to go lower. Ultimately, this market is drifting lower over the last couple of months, and I think this shows that the market is trying to find significant support underneath. Ultimately, I believe that this is going to be a very difficult trade to take in either direction, simply because of the headline risk.

EUR/GBP Video 23.04.18