The euro has been showing strength against the British pound recently, with the 0.85 level providing support for the currency pair. This level has been significant in the past, prompting me to gradually buy into this pair.
The market for EUR/GBP is known for its choppy nature, so it’s important not to invest all at once. Taking quick profits is the key strategy in such a volatile environment.
Following the European Central Bank’s rate cut, the support at 0.85 has held firm, which is a positive sign for the euro. The next target for the pair is the 50-day EMA near 0.85.50, with a potential move towards the 0.86 level if that resistance is broken.
The latest swing low near 0.8480 is crucial for determining the pair’s direction. A break below this level could signal trouble, with a potential drop to 0.84. Expect a lot of noise and volatility in the market, making for choppy trading conditions.
While caution is advised, the market currently favors the upside in the short term. Buyers seem willing to defend the 0.85 level, making short-term long positions a sensible choice. However, the sustainability of this trend remains uncertain.
Overall, the EUR/GBP market is showing reliability around the 0.85 level, making short-term long positions attractive. It’s important to monitor the market closely for any changes in sentiment.