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
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
Bearish
USD/JPY
Bullish
Gold
Bullish
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
Mixed
More View more
Real Time News
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
EUR/GBP Technical Analysis: Best Gain Since 2016, Downtrend Holds

EUR/GBP Technical Analysis: Best Gain Since 2016, Downtrend Holds

2018-11-16 03:00:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Technical Analysis

  • EUR/GBP had its best upside gain in a single day since the Brexit Referendum in 2016
  • New descending resistance from August keeps the dominant downtrend intact for now
  • Confirming new uptrend needs EUR/GBP to close above the October high at 0.89394

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

Following a bullish reversal warning sign pointed out last week, EUR/GBP clocked in its best single day performance since June 2016. Fundamentally, weakness in the British Pound was as a consequence of the sudden increased probability that the UK could be heading for a ‘hard Brexit’. Significant and volatile moves in FX do open the door for new setups in technical analysis to see where prices may go next.

For EUR/GBP, multiple resistance barriers were knocked out within a span of 24 hours. But on the daily chart, we do have the formation of what appears to be a new descending trend line dating back to August. For the time being, this may keep the dominant downtrend since then intact. A push above the line would open the door to overturning the downtrend.

However, this would require ascending through the October high at 0.89394. Until that target is reached, a lack of confirmation would prevent arguing that the pair may be heading for a lasting uptrend. Should Brexit volatility manage to drive the pair beyond that, the next area of resistance to test would be the rising range of support from April (see rising red channel on the chart below).

Meanwhile, should the Euro start losing ground against the British Pound again, near-term support appears to be the 38.2% Fibonacci extension followed by the 50% midpoint at 0.87518. Beyond that, EUR/GBP will have to manage descending through the current November lows. This is composed of a range between 0.86683 and 0.86983 which combines May and March lows.

EUR/GBP Daily Chart

EUR/GBP Technical Analysis: Best Gain Since 2016, Downtrend Holds

**Chart 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.