I am no interest in selling this market, and I believe that the 0.85 level below is essentially a “floor” in this market. It makes sense that the British pound continues to get pummeled for the British deciding to leave the European Union, but quite frankly I think that this is going to be a slow, gradual grind higher. Eventually, I believe that this market will turn around completely and the longer term, as I believe that the Euro will eventually have to be dissolved, but that might be 10 years from now.
In the meantime, people choose to punish the Pound, and run to the general safety of the Euro itself. With this being the case, I think that buying dips going forward will be the way to go, and keep in mind that the moves don’t have to be as big in this market as the PIP value is much higher than traditional pairs. With that being the case, I think there is plenty of reason to go long, and there is plenty of room for these moves to happen. I would not sell this market until we broke well below the 0.83 level, and even then I think the real “floor” in the trend is somewhere closer to the 0.80 handle below.