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
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
More View more
EUR/GBP Technical Analysis: January Losses May Be Trimmed Next

EUR/GBP Technical Analysis: January Losses May Be Trimmed Next

Daniel Dubrovsky, Strategist

EUR/GBP Technical Analysis

  • The near-term downtrend in EUR/GBP may be paused after a bullish candlestick formation
  • Immediate resistance appears to be at 0.87637, closing above would open the door to gains
  • Watch for a close under a rising support line on the 4-hour chart which may resume losses

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

Last time when I looked at EUR/GBP, it was on the verge of extending its downtrend which began earlier in January. The pair had to breach April 2018 lows (0.8620) and that would have opened the door to testing levels last seen in 2016/2017. But, this was not the case as support held and prices pushed higher instead.

What initiated the near-term recovery in the Euro technically was a Morning Star bullish reversal pattern that formed at the most recent bottom. I noted this as a warning on my twitter feed which you may follow @ddubrovskyFX for more timely updates.

Confirmation was then followed with a daily close above the near-term falling trend line from January 11th. As such, this leaves the British Pound vulnerable to more losses against its European counterpart. Especially if resistance is breached at 0.87637 on the daily chart below.

EUR/GBP Daily Chart

EUR/GBP Daily Chart

EUR/GBP 4-Hour Chart

Zooming in on the 4-hour chart, keep a close eye on a rising support line from late January. For signs that the dominant downtrend in January could reassert itself, I am closely watching for a daily close under this trend line.

From there, EUR/GBP would once again find itself facing 0.8620 for another chance at extending the downtrend. On the other hand, if the pair keeps climbing and fulfilling the Morning Star candlestick pattern, resistance seems to be the 23.6% Fibonacci extension at 0.87805 followed by 0.88108.

EUR/GBP 4-Hour Chart

**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