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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/F8psKaw1dB
  • PBOC injects net 110b Yuan in open market operations -BBG
  • RT @BrendanFaganFx: Hang Seng, ASX 200 May See Relief After Fed. Evergrande Set for Restructuring? #Evergrande #HangSeng #FOMC Link: http…
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/m42Rdv39Dx
  • Chinese estates' Evergrande loss assumes all shares sold -BBG #Evergrande
  • RT @FxWestwater: Australian Dollar Fights FOMC-Charged US Dollar After Upbeat PMI Data Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/22/Australian-Dollar-Fights-FOMC-Charged-US-Dollar-After-Upbeat-PMI-Data.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co…
  • Heads Up:🇯🇵 Foreign Bond Investment (18/SEP) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/B041Lqtg3S
  • #ASEAN based #USD index continues to extend the bounce off September lows post #FOMC This follows a test of the 100-day SMA as well as a rising trendline from June Eyes on the 38.2% Fib extension before potentially retesting the July/August highs https://t.co/uZ7OEJurPs
  • 🇦🇺 Markit Manufacturing PMI Flash (SEP) Actual: 57.3 Previous: 52 https://www.dailyfx.com/economic-calendar#2021-09-22
EUR/GBP Price Outlook: Is There Light at the End of the Tunnel?

EUR/GBP Price Outlook: Is There Light at the End of the Tunnel?

Nick Cawley, Strategist

EUR/GBP Price, News and Analysis:

  • EUR/GBP has shed 7% of its value in less than two weeks.
  • Support may start to kick-in soon.

EUR/GBP Sell-Off Nears Potential Support

A seven percent fall in less than two weeks in a major currency pair should interest traders, especially when bearish arguments can be made for both currencies. EUR/GBP made a spike high of just under 0.9500 on March 19 before slumping all the way back to yesterday’s low print of 0.8812. Both the Eurozone and the UK remain in sway to the coronavirus pandemic, with the number of infections and fatalities rising on a daily basis. Officials on both sides see this situation getting worse before it gets better, weighing heavily on economic output and demand.

EUR/GBP now nears a cluster of technical indicators and a short-term trading area and the latest sell-off may soon slow. A short-term Fibonacci set-up of the February 18/March 19 rally highlights the important 61.8% retracement level at 0.8747, just above the 50-dma at 0.8710 and the 200-dma at 0.8700. These two crossed on Tuesday, forming a ‘golden cross’, a bullish medium- to long-term indictor. In addition, the CCI indicator is nearing oversold territory for the first time in a month. There are also a cluster of recent candles between 0.8600 and 0.8750 that need to be overcome if negative sentiment is to persist. Fibonacci retracement at 0.8891 (50%) and 0.9035 (38.2%) should cap any upside break for now.

The DailyFX Online Trading Universityhas 1000s of updated articles covering all aspects of trading.

EUR/GBP Daily Price Chart (October 2019 - April 1, 2020)

EUR/GBP Price Outlook: Is There Light at the End of the Tunnel?

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 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