EUR/GBP breaks above 0.87 on Wednesday

The British pound got pummeled against most currencies around the world during the trading session, but as I record this video, it is starting to show signs of resiliency again. If that’s going to be the case, this market should break back down. I believe that on a move below the 0.8680 level, the market will probably go back towards the lows, as stability comes back into the Forex world. The 0.86 level is crucial, an area that has been important on longer-term charts. A breakdown below that market almost certainly opens the door to the 0.83 level, which is even more important from a longer-term standpoint going back years.

I believe that if we could break above the 0.8750 level, that would clear the resistance above, and could send this market much higher, perhaps looking towards the 0.88 level. However, the base case scenario for me is that we have a bit of weakness coming our way, and that we should start to sell off again. Ultimately, I believe that the market will find reasons to roll over, but it may take a bit of noise and headlines to cause this. Remember though, there is also the negotiations between the United Kingdom and the European Union at play, and that of course can move the markets rather rapidly and unexpectedly. Because of this, I believe that the sellers will return, eventually.

EUR/GBP Video 19.04.18