Talking Points:
- EUR/GBP Short Term Slide Continues
- Daily Support is Found at .8524
- Looking for additional trade ideas for the Euro and Pound? Read our 2017 forecast
The EUR/GBP is declining for the third consecutive session this week, as the British Pound continues to rally against most of the FX Majors. With today’s decline forging new weekly lows, traders will next look to tomorrows UK GDP data to see if this trend will continue. Expectations for Friday’s event are set at 2.1%. If this event comes in better than expected, the EUR/GBP may be set to challenge the standing 2017 low found at .8450.
Technically, the EUR/GBP remains in a short term downtrend. The pair has already declined as much as 324 pips from the standing 2017 high at .8852. Traders may note that the pair has traded below its 10 day EMA (Exponential Moving Average) for the last 8 sessions. This indicator is currently found at .8610, and may be considered a short term point of resistance. Traders should also note that the pair is now testing its 50 day MVA (Simple Moving Average) at .8524. This value is currently acting as support, and a breakout below this average would suggest that the pair may continue to slide lower.
EUR/GBP Daily Chart with Averages
(Created Using IG Charts)
Intraday the EUR/GBP is testing support at today’s S1 pivot at .8528. If prices remain supported here, it may suggest that prices may rebound later in the session towards points of resistance. This includes today’s R1 pivot found at .8621. A move beyond .8621 would expose the next point of intraday resistance at .8683. A move to this point would be graphically significant as the EUR/GBP would be trading at new weekly highs.
In the event of a bearish breakout, traders may next look for support at .8497 and .8436. A move to either of these points, would place the EUR/GBP below the previously mentioned 50 day MVA. In this scenario, traders may elect to continue to look for fresh bearish positions with the pair’s short term trend.
EUR/GBP 30 Minute Chart with Pivots
(Created Using IG Charts)
--- Written by Walker, Analyst for DailyFX.com
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