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.

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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $USDCHF has continued to strength today, now above the 0.9280 level, trading around the highs hit in late September. The pair has performed strongly since mid February as US rates have continued higher, rising from 0.8900 by nearly 400 pips to its current levels. $USD $CHF https://t.co/qrHY8Sy2sf
  • Against the backdrop of rising bond yields, both the Bank of England and European Central Bank will meet over the next two weeks. Get your market update from @CVecchioFX here:https://t.co/bcdEfLJjJ7 https://t.co/vXmdohw4VK
  • Oil - US Crude IG Client Sentiment: Our data shows traders are now at their least net-long Oil - US Crude since Jan 06 when Oil - US Crude traded near 5,008.80. A contrarian view of crowd sentiment points to Oil - US Crude strength. https://www.dailyfx.com/sentiment https://t.co/5dv539nKye
  • US Indices are struggling again today. The Nasdaq is now down 10% from the record highs of mid February, entering correction territory. The $VIX has risen to its highest level since last week's bond market event. DOW -1.31% NDX -2.37% SPX -1.48% RUT -2.68% $DIA $QQQ $SPY $IWM https://t.co/VKbWrCcymL
  • #Bitcoin battle-lines drawn. . . Updated 240min $BTCUSD https://t.co/epcJWYYoQh https://t.co/duPBPAM0Ps
  • Overall, Powell sticks with the current Fed stance and hence the move with the USD and UST yields higher, while gold tests 1700 https://t.co/78ds2uS2i9
  • #Gold is hitting fresh nine-month low in the aftermath of Fed Chair Powell's speech, falling to currently trade right around $1,700 for the first time since June of 2020. $XAU $GLD https://t.co/6OJ5Fn4Kn8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in Germany 30 are at opposite extremes with 70.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Lgws7z82Gc
  • $Silver testing confluent support, trendline + 23.6 fibo $SLV $XAG https://t.co/UTHhXzPS1v
  • $EURUSD tripping back down to the 1.2000 level on these Powell comments https://t.co/SAAMVbJtpe https://t.co/NXBumuo4qA
EUR/GBP Tightens its Range as Brexit Showdown Approaches Deadline

EUR/GBP Tightens its Range as Brexit Showdown Approaches Deadline

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Barnier suggests talks are running out of time and significant differences remain
  • EUR/GBP continues to be range-bound as deadline approaches
Advertisement

EUR/GBP continues to be at the mercy of Brexit headlines as volatility continues to be high. A few headlines this morning from Chief EU negotiator Michel Barnier gave the impression that, although both sides are working hard for a deal, time is running out and significant differences remain.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Daniela Sabin Hathorn
Introduction to Forex News Trading
Get My Guide

This has put the British Pound on the defensive, removing part of the risk-on sentiment it was enjoying up until now. Talks seem to have gone in the dark for now as this coming weekend is likely to be a make-or-break situation for a trade agreement to happen, at least EU leaders are demanding it to be.

EUR/GBP Daily chart

EUR/GBP Tightens its Range as Brexit Showdown Approaches Deadline

EUR/GBP continues to be confined as it attempts to break free from the 0.90 area after a push higher was rejected at the 23.6% Fibonacci area at 0.9223. Bullish momentum in the Pound then took the pair lower, testing to break below the 0.90 level, but increased buying pressure was seen at 0.8985.

Momentum indicators are showing continued support for a push higher, but the 50-day moving average has now crossed below the 200-day average, pointing at bearish pressure increasing. This could lead to an attempted break f the horizontal resistance at 0.8950, followed by the 7-month low at 0.8864.

EUR/GBP Weekly Chart

EUR/GBP Tightens its Range as Brexit Showdown Approaches Deadline

The weekly chart shows price action is consolidating the end of a symmetrical triangle formed since the beginning of March. Symmetrical triangles usually see an increase in volatility as there is to be an expected break in either direction.

To the downside, a fall below 0.88865 could see continued bearish pressure towards 0.8560, which would see EUR/GBP returning to the sideways channel back at the beginning of 2020. To the upside, a break above 0.9155 would likely see increase resistance at the 23.6% Fibonacci at 0.9223.

EUR/GBP MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 5% -6% 0%
Weekly 3% 14% 7%
What does it mean for price action?
Get My Guide

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES