• The euro has tried to rally a bit during the trading session on Thursday, but, it still has a little bit of a headwind above it.
• Therefore, I think it's difficult to think of this as a market that is going to truly take off to the upside easily.
• With this being the case, I think it’s probably only a matter of time before we get a bit of a bounce, but I don’t necessarily think it’s easiest thing to happen at this point.
• I expect a lot of volatility going forward, which is quite typical for this market.

That being said, we are sitting at a massive support level in the form of the 0.85 level, which is a large, round, psychologically significant figure and an area that has mattered multiple times in the past. I think it is more likely than not that we do get a bounce from here and we certainly are trying to do so.

The European Central Bank will be a major driver

However, I believe that the major driver is going to be the ECB and whatever it is, they decide in June. While most traders believe that the ECB is going to cut rates if they don't, that could very possibly send this market higher on its own. Either way, I think a lot of technical support sits just below. And that's something that you need to be conscious about and cognizant of.

(Click on image to enlarge)

If we were to break down below the 0.8475 level, then it's likely that the EUR/GBP market could go down to the 0.84 level, which is a massive support level on longer term charts as well. And of course, around figures. So, I do think we're getting ready to make a bigger move. We'll just have to wait and see what it is and just simply follow. Once we do get a move, it could be rather profitable, assuming that you are paying attention and of course positioned with an appropriate size as the tick value in this pair is much more than most other currency pairs.

More By This Author: