The EUR/GBP pair did almost nothing during the session on Friday, as you can see sitting above the 0.86 handle. However, this market is in an area that should find quite a bit of support, so I feel that this market will more than likely try to find a little bit of a bounce from this area, and possibly return to the 0.8750 area or so before it's all said and done. That being the case, I'm not looking to sell, I think this is far too much in the way of noise below. I'm not exactly too excited about buying, but quite frankly it looks like the Euro is about to breakout against the Dollar, and that should have an effect on this pair as well.
Looking below, I can see so much support that it's almost impossible to imagine this market going below the 0.85 level at this point in time. I imagine that if we do fall below the current area, that looking for supportive candles will be the way to go. In fact, I have aptly no plans on selling but believe that most trades in this market will be of the short-term nature at best.
Pay attention to the Thursday highs
The Thursday high being broken to the upside would be very good sign as this market would find its strength yet again. That being the case, I feel that this market is eventually going to do just that, but now I have to be very careful because there is a lot of choppiness in this market from day-to-day perspective.
On top of that, the British pound has had a pretty good run here lately as well, and that of course has an effect on this market also. Truth be told though, I believe in the end that the Euro will be stronger than the Pound regardless, and as a result this pair will naturally want to go much higher. That doesn't necessarily mean that they will both do well against the Dollar, just that the Euro is the stronger of the two at the moment.