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.

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: 2-Month Trend Support Broken

EUR/GBP Technical Analysis: 2-Month Trend Support Broken

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • EUR/GBP Technical Strategy: Pending short at 0.8994
  • Euro breaks below two-month rising trend line against British Pound
  • Looking to enter short just below 0.90 figure if prices correct upward

The Euro slipped below support guiding prices upward against the British Pound since early September, hinting a trend reversal may be in the works. Sterling strengthened after a London High Court set a roadblock for the government’s Brexit plans and the BOE QIR report struck a cautiously hawkish tone.

Near-term support is now at 0.8885, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a challenge of the 50% level at 0.8780. Alternatively, a reversal back above the 0.8985-0.9049 area (trend line, November 2 high) exposes the October 11 top at 0.9142.

Prices are too close to support to justify entering short at current levels from a risk/reward perspective. With that in mind, an entry order will be established to sell the pair at 0.8994 in the event of a correction to re-test former trend line support as resistance.

Track short-term EUR/GBP trading patterns with the GSI indicator !

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

DISCLOSURES