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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here:
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here:
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here:
EURGBP: Short-Term Resistance Threatened, Bias Remains Negative

EURGBP: Short-Term Resistance Threatened, Bias Remains Negative

2019-04-05 07:20:00
Nick Cawley, Strategist

The DailyFX Q2 2019 Forecasts are now available to download including our forecasts for GBP and EUR.

EURGBP - Negative Longer-Term Bias

EURGBP continues to struggle to make any headway despite a lack of any real progress in the fractious Brexit negotiations. Sterling remains under a cloud with little expected to happen until Brexit negotiations are complete, while the Euro is facing its own battles as its economy continues to slow and price pressures continue to ease. As a pair EURGBP have moved lower since the start of the year and touched 0.8472, a low last seen in My 2017. Subsequent rebounds have been short-lived and offered an opportunity to open fresh short-positions. The ECB are likely to keep monetary policy looser for longer to boost inflation and growth, while a successful Brexit resolution will see the Bank of England look at hiking interest rates at the end of the year if the UK jobs and wages market continue to grow.

The latest daily chart shows the downtrend from the January 2 high print at 0.9116 remains intact while a secondary trend lower from the March 21 swing-high at 0.8723 also remains in place. EURGBP currently trade around 0.85750 and if trend resistance is broken will run into further resistance at 0.8624, the 23.6% Fibonacci resistance, just ahead of the 5-day moving average at 0.8628. If these levels are broken and closed above, EURGBP may struggle to break through the 50% Fib level at 0.8718 and the March 21 high at 0.8723.

To the downside, support is seen between 0.8480 and 0.8503 before the multi-month low of 0.8472 comes into play. After here, a couple of old swing-lows made in December 2016 and April 2017 between 0.8300 and 0.8310 may come under threat.

While EURGBP looks set to trade with a negative bias going forward, a no deal Brexit would change the outlook against Sterling sharply and is a risk that traders should price in to any Sterling set-up.

EURGBP Daily Price Chart (October 2018 – April 5, 2019)

EURGBP: Short-Term Resistance Threatened, Bias Remains Negative

IG Client Sentiment Datashows how retail investors are positioned in a range of currencies and asset markets and how daily and weekly positional changes shift sentiment.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on EURGBP – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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