The EUR/GBP pair rose rapidly during the course of the day on Wednesday, as we continue to see quite a bit of weakness in the British pound overall. Obviously, one of the biggest factors will be whether or not the United Kingdom decides to leave the European Union, and as a result the British pound has been very volatile as of late anyway.
It’s obvious that the markets do not like the idea of the United Kingdom leaving the European Union, and now that we have had the most recent polls suggest that people are starting to move towards that direction, it has a lot of currency traders concerned. However, there will more than likely be quite a few holes that come out between now and then they go back and forth, and that of course will throw the British pound to and fro.
.7750 is significant
I believe that the 0.7750 level is significant and now that we have broken above and I think taking a “higher high” suggests that we do have more room to the upside. I am very much aware the fact that we have a lot of noise between here and the 0.7950 level, but at this point in time I have to believe that pullbacks will offer value that people will be interested in. However, there is quite a bit to worry about during the day today as we have an interest rate announcement coming out of the European Central Bank, and most importantly a press conference after that. It’s not that I expect the Europeans to do much, but they may try to jawbone the value of the Euro down.
I hope they do that, because a short-term supportive candle after a small drop would be an excellent opportunity to get involved based upon “value” as far as I can see. I have no interest in selling at the moment, at least not until the next poll comes out that suggests that the United Kingdom is staying in the European Union.
