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: Down Trend Back in Play?

EUR/GBP Technical Analysis: Down Trend Back in Play?

Ilya Spivak,

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

Talking Points:

  • EUR/GBP Technical Strategy: Pending short at 0.8479
  • Euro breaks support, may be resuming down trend vs. Pound
  • Longer-term Head and Shoulders top may yet be validated

The Euro broke below support guiding it higher against the British Pound for three weeks, hinting that the down trend started in mid-March may be resuming. Longer-term, prices may be in the process of carving out a large Head and Shoulders top chart formation.

A daily close below the 0.8403-19 area (February 22 low, 23.6% Fibonacci expansion) exposes the 0.8334-50 zone (triple bottom, 38.2% level). Alternatively, a push above 0.8494 (38.2% Fib retracement, trend line support-turned-resistance) opens the door for a test of the 50% threshold at 0.8550.

Prices are too close to support to justify entering short immediately. An entry order has been established to sell EUR/GBP at 0.8479. If triggered on a bounce, the trade will initially aim for a return to 0.8419 and carry a stop-loss activated on a daily close above 0.8509, the May 5 high.

What makes EUR/GBP one of the top DailyFX trades for 2017? See our forecast and find out!

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