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
Bearish
Oil - US Crude
Bearish
Wall Street
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
Gold
Mixed
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
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • ECB would likely launch infringement procedure against Bundesbank if its stop buying bonds under PSPP - sources
  • ECB seen purchasing German bonds even if Bundesbank is forced to quit PSPP, according to sources
  • 🇲🇽 GDP Growth Rate YoY Final Actual: -1.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5aSCLBqXc1
  • Heads Up:🇲🇽 Economic Activity YoY due at 11:00 GMT (15min) Expected: -3.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇲🇽 GDP Growth Rate YoY Final due at 11:00 GMT (15min) Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/rIrzpGTgvn
  • Chinese President Xi says will step up preparedness for military combat
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.31% Oil - US Crude: 0.90% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LKcIsCQeTg
  • #DAX30, #dowjones : la reapertura económica lidera los avances #trading https://t.co/GoI9cOuD9A
EUR/GBP Technical Analysis: Multiple Warning Signs of a Reversal

EUR/GBP Technical Analysis: Multiple Warning Signs of a Reversal

2018-04-06 02:00:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Talking Points:

  • Is EUR/GBP getting ready to turn higher within a descending channel from 2017?
  • A bullish reversal pattern and positive RSI divergence warn that prices may climb
  • Near-term resistance is a falling line from early March, support stands at 0.8714

Build confidence in your own EUR/GBP strategy with the help of our free guide!

The Euro might be getting ready to make a more lasting move higher against its British counterpart within a descending channel from late-2017. On the chart below, a morning star candlestick bullish reversal pattern has formed right below a short-term falling line from early March. Even so, confirmation via a close above immediate resistance will be needed to argue that EUR/GBP is turning higher.

Simultaneously, positive RSI divergence has accompanied the pair’s descent as of late and signals that downside momentum is slowly decreasing. This could be used as another argument that prices may indeed reverse higher soon.

From here, a push above the short-term line exposes the March 27th high at 0.8797. The next target would be the 50% midpoint of the Fibonacci retracement at 0.8817. Following that is the 61.8% level at 0.8852.

On the other hand, if prices keep pushing lower, immediate support is the February 1st low at 0.8714. This horizontal area caught EUR/GBP as it fell in March and kept it up on multiple occasions. If prices manage to break through, the next target will be the 38.2% Fibonacci extension at 0.86682. A push below that exposes the March 22nd low at 0.8666 and then the lower line of the descending channel.

EUR/GBP Technical Analysis: Multiple Warning Signs of a Reversal

EUR/GBP Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

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

DISCLOSURES

News & Analysis at your fingertips.