The EURGBP has moved lower to hold below 0.8100 over the past few days, and should continue its move to the downside. After hitting an intraday high of 0.8006, the pair has retraced back to trade within a downward trending channel.
Currency Pair: EUR/GBP Short-Term Bias: Short Chart: 15 Min Charts
Analysis Update
Price action has moved in our favor over the past few hours, but has yet to meet our expectations of a break below 0.7925. The EURGBP continues to hold within the channel, and we expect the downward momentum to lead the pair lower over the next trading session.
The euro-pound looks to be congesting near 0.7930, but as we stated earlier, we expect the EURGBP to test 0.7850 (21.4% Fib level of 0.7755-0.8195) for near-term support later in the week. The pair could break below its current range over the following weeks if the downward trend continues to hold in the near-term. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After reaching a high of 0.8186 earlier this month, we anticipant the downward momentum to lead the EURGBP below its current range to test 0.7850 (21.4% Fib level of 0.7755-0.8195) for near-term support over the next few days. If fact, we may see the pair break well below 0.7925 over the next few hours if the downward momentum picks up over the next few hours. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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