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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • RT @OJRenick: Retail tanking this morning https://t.co/tZpoXjraU3
  • RT @carlquintanilla: GOLDMAN: 1. “CEO confidence has plunged.” 2. “Companies spend less cash when policy uncertainty is high.” https://t…
  • Want to short currency? How can you do it in the #forex market? Find out from @WVenketas here: https://t.co/4Hv97l81jN https://t.co/M7YqAaGIaH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.23%, while traders in US 500 are at opposite extremes with 75.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HjlR4kWArI
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.39% 🇦🇺AUD: 0.33% 🇪🇺EUR: 0.18% 🇯🇵JPY: 0.11% 🇬🇧GBP: 0.02% 🇨🇦CAD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Dymy57Nnme
  • Germany's Scholz urges Europe to stay cool and avoid new escalation in repose to new US tariffs $EUR
  • Germany's Scholz says EU officials are working intensively with US to reach agreement on trade and believes a solution can be reached $EUR
  • RT @holgersdaughter: I live in Norway - which is as a country in the EEA but not in the EU. I just wanted to share a few of the things I no…
  • The $USD may rise if US-China trade deal optimism fades. The Singapore Dollar and Indian Rupee may weaken if China GDP continues slowing and the #IMF reiterates trade uncertainty. Get your market update from @ddubrovskyFX here:https://t.co/E1CIHNeaIs https://t.co/8pQW0C2BbV
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.14%, while traders in US 500 are at opposite extremes with 75.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/u5QzsWqRme
EUR/GBP Technical Analysis: Euro Surges to 8-Month High

EUR/GBP Technical Analysis: Euro Surges to 8-Month High

2017-07-12 11:41:00
Ilya Spivak, Sr. Currency Strategist
Share:

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro surges to an eight-month high versus the British Pound
  • Risk/reward considerations argue against a long trade for now

The Euro looks poised to continue higher after jumping to the highest level in eight months and reclaiming a foothold above the 0.89 figure against the British Pound. The move follows a month of sideways consolidation and hints the rising trend set from mid-April lows has resumed.

Near-term resistance is now at 0.8973, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 50% level at 0.9040. Alternatively, a reversal back below the 23.6% Fib at 0.8891 exposes the 0.8840-52 area (14.6% expansion, January 16 high).

The EURGBP short position activated at 0.8778 was stopped out. Current positioning argues for taking up the long side but structuring a trade with acceptable risk/reward parameters seems challenging at least until 0.8891 can be seen to hold as support. With that in mind, opting to stay flat seems most prudent.

Where will the Euro and Pound trade three months from now? See our forecasts here!

EUR/GBP Technical Analysis: Euro Surges to 8-Month High

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

DISCLOSURES

News & Analysis at your fingertips.