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
EUR/GBP Technical Analysis: Euro Slumps to Two-Week Low

EUR/GBP Technical Analysis: Euro Slumps to Two-Week Low

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 to two-week low vs. British Pound after BOE rate decision
  • Waiting for improved risk/reward, chart setup to consider taking trade

The Euro declined against the British Pound, falling to the lowest level in two weeks following the Bank of England monetary policy announcement. Mark Carney and company opted against a rate cut but Sterling behaved counter-intuitively, as expected.

Near-term support is at 0.8234, the 38.2% Fibonacci retracement, with a break below that opening the door for a test of the 0.8113-17 area (50% level, April 7 high). Alternatively, a rebound above the July 14 swing top at 0.8470 paves the way for a challenge of the July 6 peak at 0.8627.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. On the other hand, the absence of a clearly defined bullish reversal signal argues against taking up the long side. With that in mind, opting to remain on the sidelines seems most attractive for the time being.

.

EUR/GBP Technical Analysis: Euro Slumps to Two-Week Low

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

DISCLOSURES