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
More View more
Real Time News
  • RT @breakingmkts: *PAYPAL SAID TO EXPLORE PURCHASE OF SOCIAL MEDIA FIRM PINTEREST $PYPL $PINS
  • Wondering if $MS will drop its fire and ice scenario at some point or continue to call for a major pullback in stocks? #trading $SPX $DJI $RUT
  • Risk appetite is on the hunt for record highs to start the New York session with Bitcoin hitting the mark at $66,000 and the S&P 500 within easy reach of 4,545. DailyFX's @JohnKickligther discusses what is ahead today! https://t.co/HRDercEcMU
  • $DJIA about to hit its all time high https://t.co/dX26Ib4Bbc
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.68% 🇦🇺AUD: 0.49% 🇨🇦CAD: 0.36% 🇬🇧GBP: 0.15% 🇪🇺EUR: 0.11% 🇯🇵JPY: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JfRnr21NMZ
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.59% Wall Street: 0.43% US 500: 0.39% FTSE 100: 0.08% Germany 30: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/nCnqh3uZfw
  • Heads Up:🇺🇸 Fed Evans Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-20
  • Poll: Do you think the S&P 500 will close out Wednesday with a 6th consecutive session's advance or will there be a pullback? Will it end with a record high close?
  • After a gap and crawl higher to start the trading day, the $SPX is now within a tenth of a percent from record highs. This index is working on its 6th consecutive advance https://t.co/VyEQuPClHb
  • The era of UK Quantitative Easing (QE) is coming to an end and the Bank of England (BoE) may well start increasing interest rates in early 2022 as inflation begins to stalk the UK economy. Get your market update from @nickcawley1 here:https://t.co/rYFNS9hcsT https://t.co/9nrLVRXlD7
EUR/GBP Weekly Price Outlook: Euro vs British Pound at a Turning Point

EUR/GBP Weekly Price Outlook: Euro vs British Pound at a Turning Point

Mahmoud Alkudsi, Analyst

EUR/GBP Technical Analysis

  • EUR vs GBP chart points out ongoing uptrend move
  • Points and signals to monitor

EUR/GBP – Multi Month High

Last week, EUR/GBP printed 0.8641- its highest level in over three and half months. The price declined after as some bulls seemed to cut back. Yet, the weekly candlestick closed in the green with 2.7% gain.

This week, the Relative Strength Index (RSI) has abandoned overbought territory highlighting a weaker uptrend move.

EUR/GBP Daily PRice CHART (Jun 1, 2018 – Mar 6, 2020) Zoomed Out

EURGBP daily price chart 06-03-20. zoomed out

EUR/GBP DAILY PRICE CHART (SEP 4 – Mar 6, 2020) ZOOMED IN

EURGBP daily price chart 06-03-20. zoomed in

Looking at the daily chart, we noticed that on Feb 27 EUR/GBP rallied then closed above the 50-day average generating a bullish signal. In the following day, the pair broke above the neckline of double bottom pattern discussed in our last week update at 0.8596.

This week, the market has opened with a breakaway gap to the upside providing another bullish signal. Later, the price declined yet remained in the current trading zone 0.8649 – 0.8687. Thus, a close above the high end of the zone may cause a rally towards 0.8723. Further close above that level could mean more bullishness towards 0.8832. In that scenario, the weekly resistance levels underlined on the chart (zoomed in) should be considered.

On the flip side, any close below the low end of the zone could mean bull’s hesitation. This could lead some of them to exit the market allowing the price to fall towards 0.8504. Further close below that level could send EURGBP even lower towards 0.8400 handle. That said, the daily and weekly support levels marked on the chart should be kept in focus.

EUR/GBP FOUR HOUR PRICE CHART (JAn 15- Mar 6, 2020)

EURGBP four hour price chart 06-03-20

From the four- hour chart, we noticed that on Wednesday, EUR/GBP broke below the neckline of double top pattern residing at 0.8681, then fell to 0.8620. Currently, the price trades above the uptrend line originated from the Feb 28 low at 0.8521. Any violation to this line would be considered a bearish signal.

Thus, a break below 0.8589 could send EURGBP towards 0.8504. Nevertheless, the daily support level underscored on the chart would be worth monitoring. On the other hand, a break above 0.8746 could resume bullish price action towards 0.8808. Although, the weekly resistance level printed on the chart should be watched closely.

See the chart to figure out more about key technical levels the price would encounter in a further bullish/ bearish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES