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
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
GBP/USD
Mixed
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
Gold
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
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Nikkei 225 Technical Analysis: Japanese Stocks Ready to Drop? - https://www.dailyfx.com/forex/technical/home/analysis/jpn225/2019/11/21/Nikkei-225-Technical-Analysis-Japanese-Stocks-Ready-to-Drop.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #Nikkei #technicalanalysis https://t.co/PGX5wZs9rF
  • - #ECB minutes may catalyze selloff in the Euro - #EURUSD may fail to break above resistance - Capitulation may precede aggressive decline https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2019/11/21/Euro-Forecast-ECB-Minutes-May-Catalyze-EURUSD-Capitulation.html
  • German exports to united states rose 7.6% in Q3 despite trade tensions $EUR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.96%, while traders in US 500 are at opposite extremes with 80.41%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/QCwxDLNWqD
  • Most enjoyable chat...Thanks @JeremyNaylor_IG @IGTV 65+ years of market experience...crickey https://t.co/MFHvnv5TVn
  • How can you be a part-time trade? Get your tips on workflow and strategy here with@WVenketas: https://t.co/b8ywNOOgx9 #tradingstyle https://t.co/Pj3f20pHBt
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 0.10% Silver: -0.10% Oil - US Crude: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/znbnl8py9O
  • Senior Chinese diplomat says China resolutely opposes US passing HK human rights bill $CNH
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.08% 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.07% 🇪🇺EUR: 0.05% 🇨🇦CAD: -0.06% 🇦🇺AUD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pbh0kdSdcz
  • Norway's oil industry raises 2019-2020 investment forecasts - 2019 at NOK 182.9bln (NOK 181.7bln forecast in August) - 2020 at NOK 182.6bln (NOK 174bln forecast in August
EUR/GBP Technical Analysis: Bullish Reversal Signs vs Brexit News

EUR/GBP Technical Analysis: Bullish Reversal Signs vs Brexit News

2019-03-22 03:00:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Technical Analysis

  • EUR/GBP dominant downtrend at risk
  • Weekly chart has bullish reversal hints
  • January resistance trend line breached

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

The Euro is making a comeback against the British Pound, with Sterling fundamentally weighed down by the latest Brexit developments. Previously, I noted that the weekly and daily EUR/GBP charts were giving conflicting technical signals. It now appears that the bullish ones in the latter are prevailing and the dominant downtrend from the beginning of this year may be at risk.

Looking at the weekly EUR/GBP chart below, a bullish engulfing candlestick appears to be forming at the recent bottom. Achieving a close above the prior open at 0.8630 will solidify its creation. Subsequently closing above it would confirm the reversal pattern, opening the door to further gains. I am closely following EUR/GBP’s performance and you may follow me on Twitter here @ddubrovskyFX to stay updated.

EUR/GBP Weekly Chart

EUR/GBP Technical Analysis: Bullish Reversal Signs vs Brexit News

Switching to the daily chart reveals that EUR/GBP has now achieved multiple closes above a falling trend line from the turn of 2019. This resistance has kept its downtrend intact as the pair declined over 6.5%. At the bottom, positive RSI divergence emerged showing that momentum to the downside was fading. This is typically a warning sign that prices may be readying to turn higher.

While closing above the trend line is significant, I would also like to see a push beyond near-term resistance which is a range between 0.8668 and 0.8698. In the past, this area acted as key support since 2018 and it may establish itself as a barrier again. Extending near-term gains would then exposes resistance at 0.8810. Otherwise, immediate support appears to be at 0.8620.

Note for Sterling Traders

For those that are trading the British Pound and GBP/USD, keep a close eye for Brexit updates. Sterling is still anticipated to be the most active major, with implied volatility at 32-month highs. UK Prime Minister Theresa May has been given a third chance by the European Union to pass her divorce plan through Parliament next week. Otherwise, risks of a ‘no-deal’ Brexit could greatly increase.

EUR/GBP Daily Chart

EUR/GBP Technical Analysis: Bullish Reversal Signs vs Brexit News

**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.