EUR/GBP choppy during difficult Friday session
The EUR/GBP pair has gone back and forth during the trading session on Friday, dancing around the 0.8750 level. The market looks as if it is trying to go higher, based upon what I have seen over the last couple of sessions. However, I think that the market should continue to be very headline driven more than anything else, and with Mark Carney suggesting that perhaps the Bank of England was a bit more dovish than people thought, and I suspect that could continue to put bearish pressure on the British pound. However, when I look at the longer-term chart we have been drifting a bit lower over the longer term, so I look at this pair as one that is essentially mass chaos more than anything else.
Your capital is at risk
I believe that short-term trading with a stochastic oscillator is probably the best way to trade this market, showing signs of overbought and oversold conditions, using short-term charts to scalp this market back and forth. I think that the overall attitude of this market is going to be one of confusion, so I would use small positions in this market as we continue to see a lot of noise that could cause losses if you are not careful. I would only add once we break out of a short-term consolidation and in favor of your trade.