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
Bullish
USD/JPY
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
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • $GBPUSD estimated to fluctuate between 1.3252-1.3102 with a 68% statistical probability today judging by the latest overnight implied volatility derived from forex options contracts https://t.co/hGQbyR3hUI https://t.co/St2VWSlbww
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/6:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/yu1uNFb2tm https://t.co/d1bnmoDZvR
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: France 40: 0.10% Germany 30: 0.06% US 500: 0.03% Wall Street: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/il7RSNv4zV
  • German Bund Yields Update: 2-Year: -0.653% 3-Year: -0.666% 5-Year: -0.564% 7-Year: -0.493% 10-Year: -0.299% 30-Year: 0.224%
  • #Euro Price Outlook: $EURUSD Battle Lines Drawn ahead of #FOMC - https://t.co/cy7UwdBgUB https://t.co/K824jkyyEB
  • $USDCHF sets a fresh seven week low amid a softening US dollar https://t.co/miSi3Wba87
  • Kudlow: - Next G7 to focus on solving global economic slowdown
  • Kudlow: - US is doing well amid a global slowdown - Central banks should worry more about providing ample liquidity than controlling rates
  • Eyes on the final YouGov MRP Poll at 2200GMT YouGov Nov 27th - Con: 359 - Labour: 211 - SNP: 43 - Lib Dems: 13 Datapraxis Dec 7th - Con: 344 - Labour: 221 - SNP: 47 - Lib Dems: 12 Bookmaker: Sporting Index - Con: 340-346 - Labour: 215-221 - SNP: 43-45 - Lib Dems: 17-21
  • Update on #Cryptocurrencies (24H Change) #BITCOIN -2.88% #BITCOINCASH -2.44% #ETHEREUM -2.17% #RIPPLE -2.24% #LITECOIN -1.58%
EUR/GBP Eyeing Range Ceiling Again as Euro and Pound Consolidate

EUR/GBP Eyeing Range Ceiling Again as Euro and Pound Consolidate

2019-05-10 08:00:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Technical Analysis

  • EUR/GBP reverses course, turning higher
  • But Euro is still consolidating versus GBP
  • Sentiment signals recently turned bullish

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

The Euro has been gaining ground against the British Pound as of late, fundamentally driven by pessimism of a Brexit deal between UK Prime Minister Theresa May and Opposition Leader Jeremy Corbyn. This comes after EUR/GBP tested critical range support between 0.8472 and 0.8530, as anticipated.

Technically, gains in EUR/GBP over the past several days were accompanied by a Bullish Harami candlestick pattern on the daily chart below. Then, near-term resistance was tepidly cleared above 0.8620. This has opened the door to testing range resistance next between 0.8698 and 0.8668.

It still remains to be seen whether or not EUR/GBP can achieve a meaningful break, be it higher or lower, to exit its persistent consolidation from late February. Ideally, a breakout should be supported by fundamental drivers. Last week, we got a taste of how pressure to reach a Brexit deal, with a hawkish BoE on the sidelines, can bolster Sterling.

EUR/GBP Daily Chart

EUR/GBP Eyeing Range Ceiling Again as Euro and Pound Consolidate

Chart Created in TradingView

EUR/GBP Bullish Sentiment Bias

Accompanying gains in EUR/GBP was a shift in trader positioning offering a bullish-contrarian trading bias. Traders are now further net-short than yesterday and last week on the chart below. If you are interested in learning more about this, join me every week on Wednesday’s at 00:00 GMT as I uncover what positioning has to say about prevailing market trends!

EUR/GBP Eyeing Range Ceiling Again as Euro and Pound Consolidate

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.