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
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.45% Gold: -0.23% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vjYz9Mgfr8
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇨🇦CAD: 0.33% 🇦🇺AUD: 0.31% 🇬🇧GBP: -0.07% 🇯🇵JPY: -0.15% 🇨🇭CHF: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/olQr1de3Ie
  • Italy will also receive EUR 91bln in loans under recovery plan
  • Reminder, Italian Economy Minister said at the beginning of the month he was confident the new European Recovery Fund will make available at least EUR 100bln..... BTPs off best levels https://t.co/f9Y6NRdmhn
  • Italy to be allocated EUR 81.8bln in grants Spain to be allocated EUR 77.3bln in grants France to be allocated EUR 39bln in grants under EU proposal
  • EU to Unveil Covid-19 Recovery Fund Plan, Swiss Franc Sinking - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/05/27/EU-to-Unveil-Covid-19-Recovery-Fund-Plan-Swiss-Franc-Sinking.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #coronavirus #EU #CHF
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.69% France 40: 1.65% Germany 30: 1.61% FTSE 100: 1.51% US 500: 1.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2TnK1MAjal
  • EUR/USD Price Rejected at Resistance, Now Eyes the Support - EUR vs USD Outlook more details in the link: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/05/27/EURUSD-Price-Rejected-at-Resistance-Now-Eyes-the-Support-EUR-vs-USD-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/1WxJZCpEbg
  • FTSE 100 +1.70% @ 6,162 - pushing back towards 50% Fib retracement and early March gap...#ftse #ftse100 @DailyFXTeam https://t.co/gC5fRZHKES
  • EU Commission to mobilise EUR 750bln for European recovery fund - EUR 500bln grants - EUR 250bln loans $EUR
Brexit Latest: EURGBP Price Set to Break Lower Charts Suggest

Brexit Latest: EURGBP Price Set to Break Lower Charts Suggest

2019-01-25 12:30:00
Nick Cawley, Strategist

Sterling, Euro and Brexit Latest:

  • Positive Brexit sentiment and weak Euro-Zone data steer EURGBP ever lower.
  • Retail traders continue to build long EURGBP positions, a negative sign.

See how our Q1 2019 Trading Forecast for GBP can help you when trading.

Learn from our Mistakes!!!- Here are some of the top lessons DailyFX analysts suffered, absorbed and learned from personal experience in 2018 – We won’t be making them again!!

EURGBP Relief Rally is Just That, a Correction from Oversold Conditions

EURGBP is currently bouncing off oversold conditions after hitting a 20-month low late-Thursday after losing 5 big figures from the start of January. The Euro is under pressure from a raft of negative economic data and sentiment readings suggesting that growth is slowing sharply while price pressures remain stubbornly weak. The latest ECB Quarterly Survey shows Euro-Zone growth falling to 1.5% in 2019 – down from 1.8% in the prior quarters projections – with inflation also falling to 1.5% from a prior reading of 1.7%. In addition, media talk continues that Germany, the single-blocs economic engine, will shortly downgrade its growth forecast to 1% for 2019, against previous expectations of 1.8% as trade uncertainty and Brexit fears bite.

Sterling (GBP) on the other-hand is trending higher across the board as investors continue to price-out a No Deal Brexit and price-in a soft Brexit closer to PM May’s Plan B. This growing realization that, maybe, Brexit lows across the Sterling space have already been made and a stronger British Pound lies ahead.

EURGBP is moving higher off Thursday’s 20-month low after the pair dropped into oversold territory for the first time in over three-months. This is likely to be a relief rally and reverse lower soon, especially as the 20-day moving average has dropped below the 200-day ma, flashing ongoing EURGBP negative sentiment. The pair have also touched, and just broken, below the mid-April 2018 low opening the way for longer-term re-trace back down to the April 2017 low at 0.83133.

EURGBP Daily Price Chart (April 2017– January 25, 2019)

Brexit Latest: EURGBP Price Set to Break Lower Charts Suggest

If you are interested in trading, or just curious about how and why market moves occur, we have recently produced a new guide – How to Start Trading: Top Tips and Guides for Beginners – to help you start your journey.

IG Client Retail sentiment data confirms a negative picture for EURGBP. Retail are 61.5% net-long the pair, a bearish contrarian indicator. Retail have added to their daily and weekly net-long EURGBP positions - +20.2% and +30.9% respectively - and this data gives us a stronger EURGBP bearish contrarian trading bias.

Brexit Latest: EURGBP Price Set to Break Lower Charts Suggest

What is your view on the longer-term outlook for EURGBP?? 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.


News & Analysis at your fingertips.