Skip to Content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/GBP Technical Analysis: Euro at Risk of Deeper Losses

EUR/GBP Technical Analysis: Euro at Risk of Deeper Losses

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro Breaks Support, Hints at Deeper Losses vs. Pound Ahead
  • Passing on Short Trade as Risk Aversion Threat Clouds Outlook

The Euro declined for a fourth consecutive day against the British Pound, with a break below chart support seemingly opening the door for further weakness. The pair found a top near the 0.74 figure after retesting resistance marked by early June swing highs.

Sellers aim to challenge the 38.2% Fibonacci expansion at 0.7210 from here, with a break below that on a daily closing basis exposing the 50% level at 0.7145. The 23.6% Fib at 0.7291 has been recast as near-term resistance. A move back above this threshold clears the way for another challenge of the June 4 high at 0.7385.

Entering short is a tempting proposition from a purely technical perspective, particularly after an intraday rebound following the bearish break brought prices upward to retest support-turned-resistance. We will tactically opt to stand side however. The Euro has found strength in risk aversion recently, and a busy week laden with top-tier news-flow threatens to unleash more of the same in the days ahead. With that in mind, we will opt against committing to a directional bias for the time being.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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