EUR/GBP: New 2.5 year lows; 0.8381-67 Next Key SUP Zone

Intermediate

EUR/GBP is on track for a big week as sellers breach the YTD low at 0.8469, continuing bearish developments since August and tapping prices last seen in May 2017. The pair is testing an important corrective fib level at 0.8435. This is the 38.2% fib of the 2015-2016 bull trend and may offer longer-term bulls some relief, especially if they defend well. However, a slip below here could deepen downside risks, opening up the doors to a key support zone at 0.8381-67. The lower bound level at 0.8367 level is the midpoint of the 2009-15 bear market and is a suitable target level over the coming weeks for those in short positions. 

  • Momentum breadth studies highlight broader GBP positivity against an overall negatively alighed EUR backdrop. This is also seen through their YTD performance where GBP outperformance is tangible (which is mainly due to the surge over the last few months).
  • Next key SUP levels at:
    • 0.8381/67.
    • 0.8313/03
    • 0.8247
eurgbp

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Forex Volatility Increases

Dollar and Euro reverse sharply (DXY, EURUSD)Pound has bull trap above (GBPUSD)Aussie a bear trap below (AUDUSD)Euro-Pound breaks down (EURGBP) Continued

Solid Euro theme

Euro breaks Up (EURUSD)US Dollar Index holds key support (DXY)Negative appears on Cable (GBPUSD), sending EURGBP higher Continued

Elliott Wave Analysis: EUR/GBP In Bearish Reversal

Hello traders, EURGBP started firmly dropping from the 0.918 level (also level of a Fib. ratio of 61.8), giving us first signs of a possibly completed A-B-C move in a higher degree wave B) correction. We are now observing a minimum three-wave decline in play, so be aware of possible corrections/setbacks within the decline (first one can be seen from the lower corrective channel line).… Continued

Quiet conditions in Forex

Positives appear on Aussie and Kiwi (AUDUSD and NZDUSD)Whilst Euro-Pound posts a major negative (EURGBP) Continued

EURGBP Midpoint Breakthrough Threatens Mar-Apr Downtrend Structure

Regional cross EUR/GBP has widened its bullish management, infringing a bear Cloud Top and the Mar-Apr correction midpoint at 0.9085, to shift the attention to the vital 61.8% fib @ 0.9183; So far, mkt has surged 77pips, breaching its 70pip 10-day ATR value which could imply that prices have completed their sharp leg higher today and are due a ‘rest’; studies have taken a more… Continued

Forex Brokers in your location


SIGN UP

79% of retail investor accounts lose money


SIGN UP

78,6% of retail investor accounts lose money


SIGN UP

76.4% of retail CFD accounts lose money.


SIGN UP

79% of retail investor accounts lose.