EUR/GBP Technical Analysis
EUR/GBP Price โ Multi-Week High
On Friday, EUR/GBP took off to a near three-month high at 0.9072 then closed the weekly candlestick in the green with a 0.8% gain.
The EU-UK negotiations continue to be one of the market movers. This week, the EU chief Brexit negotiator Barnier stated that: โThe ball is in the UKโs court โ and added that the UK would be more affected than the EU if trade tariffs kick in, meaning that Europe would not cut a deal at any cost.
EUR/GBP DAILY PRICE CHART (Aug 1, 2018 โ June 26, 2020) Zoomed Out
![EURGBP daily price chart 26-06-20. zoomed out](https://a.c-dn.net/b/0nb9XQ/EURGBP-Forecast-EUR-vs-GBP-Price-Waiting-for-Upside-Break--MK_body_EURGBPdailypricechart26-06-20zoomedoutPNG.png)
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EUR/GBP DAILY PRICE CHART (May 13 โ June 26, 2020) Zoomed In
![EURGBP daily price chart 26-06-20. zoomed in](https://a.c-dn.net/b/3RHDL8/EURGBP-Forecast-EUR-vs-GBP-Price-Waiting-for-Upside-Break--MK_body_EURGBPdailypricechart26-06-20zoomedinPNG.png)
On June 18, EUR/GBP broke above the downtrend line originated from the May 29 high at 0.9054, and generated a bullish signal. Yesterday, the price rebounded from the aforementioned line then climbed back to the current trading zone 0.9015 โ 0.9149 highlighting that bullish bias was still intact.
Another close above the low end of the zone signals that bulls may push towards the high end of it. A further close above that level could encourage bulls to extend the rally towards 0.9248.
On the other hand, a close below the low end reflects the bullโs hesitation and this could send EURGBP towards 0.8912. Any further close below that level may send the market even lower towards 0.8832.
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EUR/GBP FOUR HOUR PRICE CHART (June 6 โ June 26, 2020)
![EURGBP four hour chart 26-06-20](https://a.c-dn.net/b/4vdDG4/EURGBP-Forecast-EUR-vs-GBP-Price-Waiting-for-Upside-Break--MK_body_EURGBPfourhourchart26-06-20.png)
On Monday, EURGBP corrected its upward trend and started a sideways move creating lower highs with higher lows. Therefore, a break above the higher line of the bullish rectangle would be considered a bullish signal, while any violation of the uptrend line originated from the April 30 low would be considered a bearish signal.
To conclude, a break below 0.8988 could send EURGBP towards 0.8912 while, any break in above 0.9090 may trigger a rally towards the high end of the current trading zone discussed above on the daily chart. That said, the weekly support and resistance levels marked on the four-hour chart should be watched closely.
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Written By: Mahmoud Alkudsi, Market Analyst
Please feel free to contact me on Twitter: @Malkudsi