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
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
EUR/GBP Outlook Bullish Ahead of Brexit, BoE Rate Decision

EUR/GBP Outlook Bullish Ahead of Brexit, BoE Rate Decision

2020-01-29 03:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

BRITISH POUND, EURO, EUR/GBP PRICE FORECAST – TALKING POINTS

  • British Pound outlook bearish ahead of BoE rate decision, Brexit
  • A selloff in Sterling may propel EUR/GBP towards key resistance
  • Bumpy road ahead for GBP as officials scramble for a trade deal

EUR/GBP TECHNICAL ANALYSIS

EUR/GBP may attempt to crack resistance at 0.8533 in the week ahead. Failure to do so may be met with disappointment and could cause discouraged EUR/GBP bulls to unload their positions. Selling pressure may abate around 0.8454 and the pair may then trade sideways within the 0.8597-0.8454 range again as they have since November 2019.

EUR/GBP – DAILY CHART

Chart showing EUR/GBP

EUR/GBP chart created using TradingView

Conversely, if the pair break the ceiling with follow-through, it could open the door to testing a key range that has remained unchallenged since January 14, and December 25 before that. Both times, the pair retreated from resistance and resulted in a decline. A third capitulation could lead to an aggressive selloff. However, if EUR/GBP breaks it with confirmation, it could mark a tectonic shift in the pair’s short-term trajectory.

Starts in:
Live now:
Feb 24
( 04:02 GMT )
Recommended by Dimitri Zabelin
Geopolitical Risks Affecting Markets in the Week Ahead
Register for webinar
Join now
Webinar has ended

EUR/GBP – DAILY CHART

Chart showing EUR/GBP

EUR/GBP chart created using TradingView

BRITISH POUND FUNDAMENTAL ANALYSIS

The British Pound may face selling pressure ahead of the Bank of England rate decision – even if rates are left unchanged. Overnight index swaps are currently pricing in a 50 percent chance that officials elect to cut rates by 25 basis points. The upcoming meeting on January 30 will also be Governor Mark Carney’s final chairing as head of the BoE. Therefore, his parting words may carry a premium to the extent that they impact markets.

Chart showing Bank of England

Leading up to this decision, Mr. Carney along with a few officials have debated the merits of “near-term stimulus” in light of the UK’s growth-sapping political debacle. Unexpectedly dovish rhetoric could cause the British Pound to retreat as the UK prepares to officially depart from the EU on January 31. Growing doubt of the UK’s ability to ratify a trade deal before the December 31, 2020 deadline could further pressure GBP.

EUR/GBP 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

News & Analysis at your fingertips.