- If we can break above the 50-Day EMA, the market is likely to go looking to the 200-Day EMA above, which is sitting near the 0.86 level.
- Ultimately, this is a market that is currently testing a major support level from the longer-term standpoint, and I think that is something that should not be ignored.
The market will more likely than not remain somewhat sideways in the time being, and it certainly looks as if we are trying to turn the entire turned around. This is normally something that takes some time to accomplish, and therefore everything that I see in this chart makes perfect sense. Underneath, we have the 0.85 level which has offered massive support on longer-term charts for ages, so I do think this is a particularly interesting value play at the moment.
Ultimately, this is a market that moves at the pace of eternal, so you have to be very patient. When you trade the EUR/GBP pair, you are typically thinking along the lines of weeks, if not months. I do think that given enough time we will go higher, perhaps trying to reach the 0.8750 level, but it is going to take a lot of effort to get there. In the meantime, we would have to break above not only the 200-Day EMA, but also the 0.8650 level to truly open up an attempt to make that happen.
Patience will be Key
As I stated earlier, patience will be key with this market, as it is not something that moves very quickly. That’s mainly because of the size of the contract, the value of which of course the picked value is much higher than it is in other markets so quite frankly, you don’t need it to move as far. Make sure that you have the proper position size when you trade in this market, because I know a lot of retail traders don’t bother with this pair. That being said, we are in an area that has been important multiple times in the past and therefore it is worth paying attention to.
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