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: 7-Month Down Trend Back in Play

EUR/GBP Technical Analysis: 7-Month Down Trend Back in Play

Ilya Spivak, Head Strategist, APAC

EUR/GBP Technical Strategy: Flat

  • Euro vulnerable to deeper losses after breaking channel support
  • Dominant down trend established form October 2017 still intact
  • Improved risk/reward parameters sought to enter short position

See our free guide to help build confidence in your EUR/GBP trading strategy !

The Euro looks vulnerable to deeper losses against the British Pound after prices broke support guiding the upswing from lows set in mid-April. The overall trend continues to be defined by a falling channel containing price action since October 2017.

From here, a daily close below the 38.2% Fibonacci expansion at 0.8686 opens the door for a challenge of the 0.8620-37 area (April 17 low, 50% level). Alternatively, a move back above the 23.6% Fib at 0.8746 paves the way for a retest of the channel floor, now at 0.8770, followed by the May 4 high at 0.8843.

Euro vs British Pound Daily Price Chart

While entering short seems like a broadly compelling proposition, prices are a bit too close to immediate support to justify entering the trade immediately on risk/reward grounds. With that in mind, opting to stand aside and monitoring positioning for a more actionable setup appears sensible.

EUR/GBP TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES