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.

Free Trading Guides
Oil - US Crude
Wall Street
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
More View more
Real Time News
  • Market snapshot: #GBP modestly down against major counterparts
  • Heads Up:🇳🇿 NZD ANZ Activity Outlook (MAR) due at 00:00 GMT (15min), Actual: N/A Expected: N/A Previous: 12 https://www.dailyfx.com/economic-calendar#2020-03-31
  • The monthly candles come out tomorrow. It's going to be pretty crazy
  • US President Donald Trump spoke with Italian PM Giuseppe Conte about efforts to combat #coronavirus - BBG
  • Heads Up:🇯🇵 JPY Industrial Production (YoY) (FEB P) due at 23:50 GMT (15min), Actual: N/A Expected: -4.9% Previous: -2.3% https://www.dailyfx.com/economic-calendar#2020-03-30
  • Heads Up:🇯🇵 JPY Large Retailers' Sales (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: -1.6% Previous: -1.4% https://www.dailyfx.com/economic-calendar#2020-03-30
  • Heads Up:🇯🇵 JPY Retail Trade (YoY) (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: -1.5% Previous: -0.4% https://www.dailyfx.com/economic-calendar#2020-03-30
  • 🇯🇵 JPY Jobless Rate (FEB), Actual: 2.4% Expected: 2.4% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-03-30
  • The Japanese Yen shared fully in the broad Dollar weakness which has come with global stimulus efforts. $USDJPY's medium-term downtrend looks quite comfortably in place. Get your USD/JPY market update from @DavidCottleFX here:https://t.co/5io7seTGyk https://t.co/bTmDlf5LLv
  • Heads Up:🇯🇵 JPY Jobless Rate (FEB) due at 23:30 GMT (15min), Actual: N/A Expected: 2.4% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-03-30
EUR/GBP to breakout over .8800

EUR/GBP to breakout over .8800

2011-08-09 14:23:00
Walker England , Trading Instructor,

The EUR/GBP has been grinding out higher lows and higher highs for the better part of the 2011 trading year. From the July 2010 high at .90825, the pair has moved lower and currently price has tested and bounced off of the 200 sma located at .8666. This price levels importance is critical. If this level holds, the pair opens itself up for a new round of buying opportunities. A break below support , would open up the EUR/GBP towards fresh lows under .8400.

Fundamentally, neither pair finds itself best of show. The Euro zone is still stricken with an unsolved debt crisis and today another round of unfavorable industrial production numbers were released out of the UK. As the fundamental future of each economy remains uncertain, we keep an eye on the economic calendar toward more clues on the next developing move.

EUR.GBP_to_breakout_over_.8800_body_Picture_1.png, EUR/GBP to breakout over .8800

Price Action

Moving to an 8H chart, price has noticeably retraced against its long standing trend. As price moves towards short term resistance near .8760, we will begin looking for a breakout. For a new short term uptrend to begin, it is preferable to see the previous high (.8804) from August 1st be broken prior to entry.

EUR.GBP_to_breakout_over_.8800_body_Picture_2.png, EUR/GBP to breakout over .8800

Trading Opportunity

My preference is to buy the EUR/GBP on a break of resistance on our 8H chart. Entrys should be placed over the previous high of .8800 or better. Stops should be placed at .8700 with Limits targeting .9000, setting up a clear 1:2 Risk/Reward ratio.

Alternative scenarios include price trading lower off resistance on the 8H and challenging daily support.

Walker England contributes to the Instructor Trading Tips articles. To receive more timely notifications on his reports, email instructor@dailyfx.com to be added to the distribution list.

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


News & Analysis at your fingertips.