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
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
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
Bitcoin
Mixed
More View more
Real Time News
  • The Australian and New Zealand Dollars trimmed their gains as optimism on the US-China “phase one” trade deal faded. NZD/USD is at risk to turning lower on signs of technical indecision $AUDUSD $NZDUSD #tradewars - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/12/16/Australian-Dollar-and-New-Zealand-Dollar-Outlook-as-Week-Begins.html?CHID=9&QPID=917702 https://t.co/SmVBWwojc3
  • - The Singapore Dollar (SGD) presents a unique undertaking for traders - It is guided by the MAS, which manages the exchange rate instead of short-term rates - Learn the principals of developing an SGD fundamental forecast to trade USD/SGD https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/03/The-Singapore-Dollar-and-MAS-What-is-SGD-and-How-to-Trade-it.html
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/eWM70sTfq3
  • Natural Gas trading is popular among traders due to its volatility. How can you trade this? Find out here: https://t.co/GSzSS9fn7Z https://t.co/bl0lp9NtkQ
  • #EURUSD pivot points (daily) – S3: 1.0991, S2: 1.1065, S1: 1.1093, R1: 1.1167, R2: 1.1214, R3: 1.1288- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Hello there, traders! Themes for this week's webinar: - US-China #tradewar - #HongKongProstests: Carrie Lam's visit to Beijing - #UKElections2019 recap + outlook - Government shutdown in 2020? - Update on #RCEP - CRUCIAL rate decision this week⬇️ https://www.dailyfx.com/webinars/146770987
  • With increasing volatility in weather patterns, how might storms, hurricanes, and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Get your market update from @ZabelinDimitri here:https://t.co/O4dgBl47fq https://t.co/eMb7iCfdqS
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/1rVzPr6gx4
  • See the DailyFX Fundamental and Technical forecasts for the week ahead on the major currencies, indices and commodities here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2019/12/15/Dow-Pound-and-Aussie-Dollar-Test-Post-Trade-War-Election-Breakouts.html
  • The US-China agreement brings this scene from camp cinema history to mind: https://t.co/WsfoGMZbw1 via @GIPHY https://t.co/h045efj8Em
EUR/GBP Outlook - Price Action Continues to Break Down

EUR/GBP Outlook - Price Action Continues to Break Down

2019-11-15 10:30:00
Nick Cawley, Analyst
Share:

EUR/GBP Price Outlook, Analysis and Chart:

  • EUR/GBP trades near low last seen 6-months ago.
  • April 2017 low print remains the bearish medium-term target.

Brand New Q4 2019 GBP and EUR Forecast and Top Trading Opportunities

EUR/GBP Price Analysis

EUR/GBP’s slow grind lower continues, and this week the pair made a fresh multi-month low after bouncing off short-term support. The British Pound remains firm with expectations continuing to build that Boris Johnson will not only win the upcoming election on December 12 but will also gain a majority in Parliament, making it easier for him to push through his Brexit plans. The Euro on the other hand continues to drift lower against a backdrop of muted inflation and growth prospects. ECB President Christine Lagarde has already said that fiscal policy throughout the zone needs to be implemented alongside the central bank’s accommodative monetary policy and it remains to be seen how much push back this receives, especially from Germany.

The daily EUR/GBP chart shows the pair now just below recent support around the 0.8570 area with little support seen until the May 5 print at 0.84907, a low that guards the March 13 multi-month print at 0.8472. A trade here would complete the reversal of the March-August 850 pip rally. The recent sell-off has also taken the price below all three moving averages, a bearish chart set-up.

The CCI indicator at the bottom of the chart shows the market is currently oversold and this may stem any sharp fall in the short-term. There are a cluster of resistance levels all the way back up to 0.8675.

EUR/GBP Daily Price Chart (January - November 15, 2019)

EUR/GBP Outlook - Price Action Continues to Break Down

IG Client Sentiment shows that traders are 64% net-long EUR/GBP, a bearish contrarian bias. However daily and weekly sentiment shifts give us a mixed outlook.

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 the Euro and Sterling – 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.

DISCLOSURES

News & Analysis at your fingertips.