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
Breaking news

UK's Boris Johnson Set to Resign as Prime Minister

EUR/GBP Technical Analysis: Topping in Progress Near 0.74?

EUR/GBP Technical Analysis: Topping in Progress Near 0.74?

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 Drops Most in 3 Weeks After Being Rejected Above 0.74 Once Again
  • Waiting for Risk/Reward Parameters to Align for Short Trade Opportunity

The Euro turned lower against the British Pound after brief period of consolidation, producing the largest daily decline in three weeks. Prices faltered after probing five-month highs above the 0.74 figure last week, with negative RSI divergence hinting a larger topping may be in progress.

From here, near-term support comes in at 0.7322, marked by the 23.6% Fibonacci retracement. A break below this barrier on a daily closing basis clears the way for a test of the 38.2% level at 0.7247. Alternatively, a reversal back above the 14.6% Fib at 0.7368 – now acting as resistance – opens the door for a challenge of a double top at 0.7421.

The long-term EURGBP trend continues to favor weakness and we are keen to enter a short position to take advantage of returning selling pressure. Risk/reward considerations argue against pulling the trigger just yet however. Not only are prices too close to support, but the available trading range is smaller than 20-day ATR. With that in mind, we will stand aside for now and wait for a more actionable opportunity to present itself.

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

EUR/GBP Technical Analysis: Topping in Progress Near 0.74?

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

DISCLOSURES