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
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/qbgOyJ7gwT
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇨🇭CHF: 0.14% 🇦🇺AUD: -0.05% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.13% 🇬🇧GBP: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cSsg7l8b4x
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.05% Wall Street: 0.01% US 500: 0.01% France 40: -0.02% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CyoJBdYbGT
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: 0.01% Silver: -0.22% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cZeVIxiAJm
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.32%, while traders in NZD/USD are at opposite extremes with 75.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fmCBX0W0w3
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Silver: -0.21% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/MBlfthkrSp
  • Heads Up:🇲🇽 Monetary Policy Meeting Minutes due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are some key influences Black Friday has on the economy and stock markets? Find out: https://t.co/KIsvaIWZDN https://t.co/NS7o4MrEok
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.06% US 500: 0.04% Wall Street: 0.01% France 40: -0.03% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zTLPlL868T
  • 🇨🇦 Average Weekly Earnings YoY (SEP) Actual: 6.9% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2020-11-26
EUR/GBP - Slipping Through Short-Term Support, Multi-Week Low Nears

EUR/GBP - Slipping Through Short-Term Support, Multi-Week Low Nears

2020-10-28 11:17:00
Nick Cawley, Strategist
Share:

EUR/GBP Price, News and Analysis:

  • Technical set-up looking negative.
  • IG client sentiment also suggests lower prices.
Advertisement

EUR/GBP is competing against a cluster of resistance levels and looks likely to move lower if these hold firm. The pair are trading either side of the trend resistance and trend support apex, and a close below this support, and preferably the 38.2% Fibonacci retracement level at 0.9035, may usher in a period of lower prices.

The 20-day simple moving average has broken below the 50-day sma, a bearish sentiment set-up, and both of these two moving averages – 20-dma at 0.9072 and 50-dma at 0.9087 – will also act as short-term resistance. The longer-dated 200-dma is currently close at 0.8951 and a break and close below here will also add to the bearish market outlook. Below here, the 50% Fib retracement at 0.8891 and the September 3 multi-week low at 0.8865 will likely be targeted.

Any bullish reaction is expected to run into resistance between 0.9148 and 0.9165.

From a fundamental outlook, news from the EU/UK trade talks will likely drive the pair. EUR/GBP is a good barometer on how talks are progressing and any suggestion that a deal is on the cards will send the pair lower. On the flip side, if EU/UK trade talks break down, then the pair will quickly press against the resistance levels mentioned above.

EUR Forecast
EUR Forecast
Recommended by Nick Cawley
Download our Brand New Q4 Euro Forecast
Get My Guide

EUR/GBP Daily Price Chart (February – October 28, 2020)

EUR/GBP - Slipping Through Short-Term Support, Multi-Week Low Nears
EUR/GBP MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% 14% 6%
Weekly 16% -7% 5%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

IG Retail trader data show 54.44% of traders are net-long with the ratio of traders long to short at 1.19 to 1. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/GBP prices may continue to fall. And traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/GBP-bearish contrarian trading bias.

What is your view on EUR/GBP – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES