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: 3-Month Trend Line Broken

EUR/GBP Technical Analysis: 3-Month Trend Line Broken

Ilya Spivak,

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro breaks 3-month trend line, hints down trend vs. Pound is resuming
  • Looking for improved risk/reward parameters to trigger short position

The Euro moved lower against the British Pound as expected, breaking rising trend line support set from mid-November 2015. The pair signaled topping with the formation of a bearish candlestick pattern reinforced by negative RSI divergence.

From here, a break below the 23.6% Fibonacci retracement at 0.7705 opens the door for a challenge of the 38.2% level at 0.7567. Alternatively, a reversal above rising trend line support-turned-resistance – now at 0.7805 – paves the way for another test of the February 24 high at 0.7928.

The break of trend line support suggests the multi-year EUR/GBP down trend is resuming, in line with our 2016 fundamental forecast. Prices now sit squarely at support however, making it unattractive to enter short from a risk/reward perspective. With that in mind, we will remain on the sidelines for now.

Losing money trading the Euro? This might be why !

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