Yahoo Finance Euro drifts lower against Sterling during Thursday session
The Euro was very noisy against the British pound during trading on Thursday as we continue to see a lot of noise in the Forex markets overall. However, we are drifting a bit lower as of the last couple of sessions, and I think we are getting ready to revisit the lows. That would put this market closer to the 0.87 level, but this market is typically a bit of a grind, and I don’t think that it’s going to be any different this time. I believe that every time we rally, you should be looking for a short-term selling opportunity. I’m not looking for a major move, simply more of a grind lower. The 0.88 level above should continue to be massive resistance, so a break above that level will be explosive and its implications, and more than likely it’s momentum.
If we were to break down below the 0.87 level, the market could drop another 100 pips from there, to the structurally important 0.86 level after that, which has been supportive more than once. That’s an area where I would expect to see a major fight happen, which of course could determine the longer-term attitude of the markets. However, I don’t think worrying about that right now makes a lot of sense as the market has been noisy due to not only concerns with both economies, but the question as what happens after the divorce of course continues to make this market very difficult. This is essentially a battle between two major lightweights.
EUR/GBP Video 25.05.18
This article was originally posted on FX Empire
