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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
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
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/oQrOpYINOj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/LSVPlus0vv
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/rPd6B5KzuI
  • Time-cycle analysis suggests that the Japanese Yen could slide significantly lower against its major counterparts. Key levels for AUD/JPY, EUR/JPY and GBP/JPY. Get your market update from @DanielGMoss here:https://t.co/WPq4Z9zzEw https://t.co/VzVLrBbL9q
EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

Daniel Dubrovsky, Strategist

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