Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,369.44
    +201.37 (+0.50%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    69,920.41
    -414.27 (-0.59%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,536.07
    +5.47 (+0.36%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Euro continues to drift lower against the British pound

While the EUR/GBP pair has bounced a bit during the day on Thursday, ultimately this is a market that continues to go much lower. The 0.87 level has offered a bit of support, but I think ultimately this market is ready to continue going lower, especially considering that we have seen such a tenacity to selling over the last several weeks.

The EUR/GBP pair bounce slightly during the day on Thursday, but we are already starting to roll over a bit and show signs of negativity again. Over the last several weeks, every time this market rallies, we only turn around again. I think that we are now going to go looking towards the 0.87 level again, and then eventually break down to the 0.86 level which has been support on longer-term charts. This is a massive level, so I think it’s good to be very difficult to break down below there. It’s not that we can’t, just that it will take several times.

Ultimately, if we rally from here I think that the market will struggle to break above the 0.8825 handle, which is the recent resistance that we had seen during the last couple of weeks. This is a market that is very noisy, and I think that the noise will more than likely continue. I think it favor short-term trading, so scalpers will love this market. Rallies that show signs of exhaustion are to be sold, especially if you can use something along the lines of the stochastic oscillator on the short-term chart. Ultimately, if we did break down below the 0.86 level, the market will unwind rather drastically. I think that rallies have to be looked at with suspicion, and therefore I think that being patient enough to pick up the British pound “on the cheap” is the way to go.

EUR/GBP Video 18.05.18

This article was originally posted on FX Empire

More From FXEMPIRE: