News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Greek 20-year bond yield over the last five years. #ecb #qe @DailyFXTeam https://t.co/6X2LEMtp2z
  • 🇮🇹 Business Confidence (NOV) Actual: 90.2 Expected: 93.5 Previous: 94.7 https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇮🇹 Consumer Confidence (NOV) Actual: 98.1 Expected: 99 Previous: 101.7 https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇹🇼 GDP Growth Rate YoY Final (Q3) Actual: 3.92% Previous: -0.58% https://www.dailyfx.com/economic-calendar#2020-11-27
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/7gtgUO9NYp
  • 🇮🇹 Business Confidence (NOV) Actual: 90.2 Expected: 93.5 Previous: 95.6 https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇮🇹 Consumer Confidence (NOV) Actual: 98.1 Expected: 99 Previous: 102.0 https://www.dailyfx.com/economic-calendar#2020-11-27
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.45%, while traders in NZD/USD are at opposite extremes with 73.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LRbRW0ml57
  • Heads Up:🇮🇹 Business Confidence (NOV) due at 09:00 GMT (15min) Expected: 93.5 Previous: 95.6 https://www.dailyfx.com/economic-calendar#2020-11-27
  • Heads Up:🇮🇹 Consumer Confidence (NOV) due at 09:00 GMT (15min) Expected: 99 Previous: 102.0 https://www.dailyfx.com/economic-calendar#2020-11-27
EURGBP Nears Strong Support Levels, Bounce Possible

EURGBP Nears Strong Support Levels, Bounce Possible

2018-09-11 14:15:00
Martin Essex, MSTA, Analyst
Share:

EURGBP price, charts and analysis:

  • The EURGBP price is closing in on a broad band of support that should limit its downside near-term.
  • A bounce from there is possible, while a break could prompt sizeable further losses.

Check out the IG Client Sentiment data to help you trade profitably.

EURGBP nears major support zone

The EURGBP price has fallen sharply since hitting a 0.9099 high on August 28. However, it is now close to a band of support that is likely to curb further major losses near-term.

Having already broken downward through the 20-day and 50-day simple moving averages, it is now close to both the 100-day sma at 0.8870 and the 200-day sma at 0.8832. Moreover, the significant August 2 low lies at 0.8854 and a rising trendline connecting the higher lows recorded since mid-April is close to the same level.

Taken together, this means that there is major support between 0.8832 and 0.8870 and the price could bounce from there. However, if it breaks through, there is a chance of a dive to the mid-June lows between 0.8718 and 0.8729.

EURGBP Price Chart, Daily Timeframe (February 19 – September 11, 2018)

Latest EURGBP price chart.

Chart by IG

As yet, the 14-day relative strength index, or RSI, is still above the 30 oversold level, suggesting further small losses are possible.

Putting all this together, a rally from the current lows would be no surprise but any trader deciding to go long would be wise to place a stop around 0.8850 and turn bearish at that point. To the upside, a reasonable first target would be the 20-day moving average, currently at 0.8989, with a stronger rally potentially taking the price up to or even above the August 28 0.9099 high.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES