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
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
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
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • Bank of Korea🇰🇷 - Central bank to actively buy government bonds if needed - Considering various steps to stabilize bond markets (BBG) #coronavirus
  • Bank of Korea says US-China tension would be a downside risk to Korea - BBG Learn more about the impact of geopolitics on financial markets from @ZabelinDimitri - https://www.dailyfx.com/authors/Dimitri_Zabelin
  • Bank of Korea says they intend to use tools other than interest rates - BBG #USDKRW #coronavirus
  • EUR/USD has rallied the best part of one big figure so far today and nears important resistance around the 1.1000/1.1020 area. Get your $EURUSD technical analysis from @nickcawley1 here: https://t.co/dJ1UzJSqHR https://t.co/kEe7i3umdh
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.48% Gold: 0.37% Oil - US Crude: -2.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ccW8V5Pkko
  • Funny experiment: if you google "split rating" without adding the word "finance" to the end, you just get James McAvoy staring at you intensely.
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.17% 🇦🇺AUD: 0.11% 🇬🇧GBP: 0.08% 🇳🇿NZD: 0.05% 🇨🇭CHF: 0.04% 🇯🇵JPY: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/AcfM8c2HHF
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.01%, while traders in US 500 are at opposite extremes with 76.24%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fIWcZgb3Ay
  • 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/iiNKIWcpix
  • 🇳🇿 ANZ Business Confidence Actual: -41.8 Previous: -66.6 https://www.dailyfx.com/economic-calendar#2020-05-28
EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

2018-11-02 03:30:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Technical Analysis

  • As expected, EUR/GBP fell flat on its face after a false breakout to the upside
  • Numerous bearish signals hint the dominant downtrend could resume ahead
  • Support at a range between 0.87237-0.87182, resistance is August trend line

Just started trading EUR/GBP? Check out our beginners’ FX markets guide!

As anticipated, the bearish warning signs in EUR/GBP prices ended up preceding a reversal following a false breakout above a descending trend line from August. The fundamental backdrop behind an aggressive decline in the Euro against the British Pound appeared to be as a result of positive Brexit updates from the UK. Following these developments, EUR/GBP seems poised to resume its dominant downtrend since August.

Looking at the weekly chart below, the pair is on course to forming a quite rare falling three method bearish candlestick pattern. Progress to the upside in the pair was impeded by a rising range of support from April (red parallel lines below) which reestablished itself as new resistance. Confirmation of this formation would require a weekly close under the October 15th candle and this might be the case in the near-term.

EUR/GBP Weekly Chart

EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

Looking at the daily chart below reveals a bearish engulfing candle that formed following the peak of EUR/GBP’s uptrend in October. The candle itself stopped right on near-term rising channel support. But this was swiftly followed by another aggressive bearish candle which confirmed the reversal. This now places EUR/GBP facing a narrow range of horizontal support between 0.87237 and 0.87182 (June 2018 lows) next.

Descending through support exposes a range between 0.8680 and 0.8697 before targeting the current 2018 low at 0.8620. Meanwhile the descending trend line from August may reestablish itself as resistance in the event prices turns higher. Should EUR/GBP make further progress to the upside beyond that, resistance may hold next between 0.88418 and 0.88729.

EUR/GBP Daily Chart

EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

Zooming in at the EUR/GBP 4-hour chart gives us a closer look of the break under the near-term rising channel (parallel blue lines below). Heading into the sharp decline, you can see where the false breakout to the upside precisely occurred and how resistance held.

EUR/GBP 4-Hour Chart

EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

**Charts created in TradingView

FX Trading Resources

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

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

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

DISCLOSURES

News & Analysis at your fingertips.