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
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Join analyst @DavidJSong at 6:15 PM ET/10:15 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/d5ouk68GIU
  • Trader tip: Not making a decision means avoiding #FOMOintrading. @IlyaSpivak https://t.co/PGD0n13D9p
  • Easing trade tensions provide tailwinds for equity markets. Get your update form @JMcQueenFX here: https://t.co/79q553DJNa
  • Here's a link to my technical outlook for the Dollar this week: 'US Dollar Facing Measured Breakout and In Its Long Grind Higher' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/22/US-Dollar-Facing-Measured-Breakout-and-In-Its-Long-Grind-Higher.html?utm_source=Twitter&utm_medium=Kicklighter&utm_campaign=twr
  • RT @business: A senior official from the Bank for International Settlements has added his voice to those calling on governments to back up…
  • RT @JimPethokoukis: “The recent rise in trade policy uncertainty is extraordinary by several metrics ... much evidence points to negative e…
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/JxyCkhOHSS
  • What is the biggest obstacle a trader needs to overcome to be successful? Find out from @JWagnerFXTrader here: https://t.co/7nWHSApUzS #FOMOintrading https://t.co/vXfEWo58RY
  • OECD warns of recession, central banks unleash, and the $USD builds breakout pressure. Get your update from @JohnKicklighter here: https://t.co/UKg6wfl8PB
  • What are the 6 common mistakes traders make? Is #FOMO a common mistake? Find out from @PaulRobinsonFX here:https://t.co/B7hOpGEHMp #FOMOintrading https://t.co/WOYk6lOJur
EUR/GBP Technical Forecast: What Now After Testing Monthly Support?

EUR/GBP Technical Forecast: What Now After Testing Monthly Support?

2019-09-13 14:37:00
Mahmoud Alkudsi, Market Analyst
Share:

EUR/GBP Outlook

See EUR and GBP guides and find out for free what is likely to move market prices through Q3 from Main Currencies and Commodities Forecasts

EUR/GBP– Bearish Market

Yesterday, EUR/GBP broke below the July 25 low (monthly support) at 0.8891 printing its lowest level in eight weeks. However, the price rallied after and settled above the 0.8900 handle.

Since Aug 21, the Relative Strength Index (RSI) has been moving below 50 emphasizing the bearish outlook of the pair.

Having trouble with your trading strategy? Need a hand? Here’s the #1 Mistake That Traders Make

EUR/GBP DAILY PRICE CHART (June 29, 2017- SEP 13, 2019) Zoomed Out

EURGBP price daily chart 13-09-19 zoomed out

EUR/GBP DAILY PRICE CHART (June 20 – 13 SEP, 2019) Zoomed in

Please add a description for the image.

Looking at the daily chart, we notice on Sep 5, EUR/GBP declined to a lower trading zone 0.8995 – 0.8890 since then the price has been looking for a test of the low end of the zone.

Thus, a close below the low end of the zone could press EURGBP towards 0.8852. Further close below this level may see the price trading even lower towards the vicinity of 0.8791-86. That said, sellers need to pay a close attention on the weekly support area and levels marked on the chart (zoomed in).

On the flip-side, any failure in closing below the low end could send the price towards the high end of the zone. Further close above the high end may push EURGBP towards 0.9051. In that scenario, buyers need to monitor closely the weekly resistance levels underlined on the chart.

Just getting started? See our Beginners’ Guide for FX traders

EUR/GBP Four-HOUR PRICE CHART (Aug 30 – 13 Sep, 2019)

EURGBP price four hour chart 13-09-19

From the four-hour chart, we notice yesterday EUR/GBP found resistance at 0.8974 - the Sep 10 high then declined and rebounded at the low end of the aforementioned trading zone.

Hence, a break above 0.8838 could send EURGBP towards 0.8791. Although, the weekly support level underlined on the chart should be considered. See the chart to know more about lower support levels the price would encounter in a further bearish move.

On the other hand, a break above 0.8940 may push EUR/GBP towards the high end of current trading zone. Nonetheless, the daily resistance level underscored on the chart needs to be watched closely. See the chart to find out more about higher resistance levels the pair would face in a further bullish move.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.