The EUR/GBP pair initially tried to rally during the session on Thursday, but ran into a bit of resistance again at the 0.72250 level. This slight pullback is an overly surprising though, because there has been quite a bit of volatility in the marketplace recently. This is especially true when you are talking about the Euro, because quite frankly the Greek crisis will have a lot of people concerned.
That being said, the one thing that I cannot help but notice is that the Euro simply won’t die. With that, I think that the Euro been sold off hand over fist is a thing of the past now, and it’s only a matter time before the buyers come to the rescue of the common currency every time it dips. Ultimately, I believe that will be the same in this pair as it is against the US dollar, so I think that the range bound trading overall will continue.
Buying pullbacks
At this moment, I am buying short-term pullbacks as we have just seen. A supportive candle on a short-term chart will be a decent buying opportunity as far as I can tell, because I believe we continue to bounce around between the 0.70 level on the bottom, and the 0.74 level on the top. On the wrong, this is going to be a choppy affair, but at the end of the day this is summertime trading and it is difficult to get overly excited about any particular trade until the liquidity comes back.
It is a different at the moment though, as the Greek crisis certainly is moving the market. However, keep in mind that the United Kingdom is highly reliant on the European Union, so the European Union and clothes, it’s only a matter of time before the British pound does as well. With that, I think this market continues to remain fairly neutral as far as longer-term trading is concerned, and as we are closer to the bottom them the top of the consolidation area, it makes sense that we go higher.
