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
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
Oil - US Crude
Bullish
Wall Street
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
Bullish
GBP/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
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
More View more
Real Time News
  • Canada's Trudeau: We are looking to reopen the border with the U.S. $USDCAD
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 0.86% Gold: 0.81% Oil - US Crude: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nZBu5vyQD6
  • RT @BrendanFaganFx: Bitcoin, Ethereum, Dogecoin Moving Mainstream as Hollywood's Elite Embrace Crypto #Bitcoin #Ethereum $BTC $ETH Link:…
  • Gold is holding steady around a key intersection of resistance. Silver continues to channel its way higher, yet to reach substantial resistance. Get your $XAUUSD market update from @PaulRobinsonFX here:https://t.co/nuspNBlSHj https://t.co/Etgcc29zzI
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.36%, while traders in Germany 30 are at opposite extremes with 72.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gJAFKdapzH
  • White House: - We do not believe that unemployment benefits are a significant factor in the fluctuating unemployment figures - President Biden is open to other options to pay for his proposed infrastructure bill
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.50% Wall Street: 1.12% France 40: 0.25% FTSE 100: 0.04% Germany 30: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ab7PKcKx4d
  • Hey traders! There was a note-worthy move from USD and Indices today. Wrap up your week with @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/Z5wmfEGUc0
  • Fed's Kaplan: Because cryptocurrencies lack the same underlying worth like gold, investors must exercise caution
  • Fed's Kaplan: - If supply-demand imbalances persist, there is concern that they will become rooted in inflation expectations - Upon emerging from the pandemic, we should begin to discuss tapering QE
EURGBP Uptrend May Soon Retreat as Pair Test 9-Month Resistance

EURGBP Uptrend May Soon Retreat as Pair Test 9-Month Resistance

Dimitri Zabelin, Analyst

EURGBP TECHNICAL ANALYSIS

  • EURBP broke through 2-month rising support channel
  • Despite deviation the pair is continuing to climb higher
  • EURGBP may retreat as it approaches key price level

See our free guide to learn how to use economic news in your trading strategy!

Last week, EURGBP broke through a 2-month rising support channel, though this deviation from the steep uptrend did not discourage traders’ resolve. Despite slowing upside momentum as shown in negative RSI divergence, underlying bullish sentiment for the pair – arguably caused by eroding confidence in Sterling over Brexit – appears strong.

EURGBP Broke Below 2-Month Upward-Sloping Support Channel

Chart Showing EURGBP

The pair is now aiming to breach the 0.9039/60 critical resistance range (red dotted lines). The last time EURGBP was trading within this zone was towards the latter half of 2018 and early breaths of 2019. In the coming week, the pair may shy away and trade between the lower bound and support at 0.8952 if traders do not yet feel confident enough to push through formidable resistance.

However, irregular price moves should be taken into consideration in light of the ongoing EU-UK divorce that has left both partners bitter and exhausted. EURGBP’s volatility is frequently reflected in political oscillations surrounding Brexit. The 0.42% jump on July 16 came the same day as a UK lawmaker said blocking a no-deal outcome may be more difficult than expected.

In this regard, performing technical analysis on a pair whose counter currency is linked to a fundamentally volatile environment makes it unusually difficult and unpredictable. There is no telling when a sudden political development will cross the headlines and what the respective magnitude of the price swing will be.

If you’re interested in learning how to analyze and trade around political risks, see my report here.

Zooming out, EURGBP has experienced a speculator bounce back after it touched the upper crust of the 2-year 0.8300-.8477 support channel (red dotted lines). Since early May, the pair has closed higher for eleven consecutive weeks, though the extending wicks and shrinking bodies of the most recent candles suggest the sugar rush may be wearing off.

Is EURGBP Feeling Exhausted?

Chart Showing EURGBP

EURGBP TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES