GBP/USD, EUR/GBP technical analysis: European open – Nov 9, 2023
A quick look at the charts suggests the British pound might be nearing a burst of energy, and that could be beneficial for GBP/USD bulls or EUR/GBP bears.
Share this:
Asian Indices:
- Australia's ASX 200 index rose by 15.9 points (0.23%) and currently trades at 7,011.30
- Japan's Nikkei 225 index has risen by 343.46 points (1.07%) and currently trades at 3,259.94
- Hong Kong's Hang Seng index has fallen by -54.65 points (-0.31%) and currently trades at 17,513.81
- China's A50 Index has risen by 3.36 points (0.03%) and currently trades at 12,133.35
UK and Europe:
- UK's FTSE 100 futures are currently down -12.5 points (-0.17%), the cash market is currently estimated to open at 7,389.22
- Euro STOXX 50 futures are currently down -3 points (-0.07%), the cash market is currently estimated to open at 4,175.49
- Germany's DAX futures are currently down -23 points (-0.15%), the cash market is currently estimated to open at 15,206.60
US Futures:
- DJI futures are currently down -10 points (-0.03%)
- S&P 500 futures are currently down -4.5 points (-0.1%)
- Nasdaq 100 futures are currently down -21 points (-0.14%)
Events in focus (GMT):
- 08:30 – BOE MPC member Pill speaks
- 13:30 – Fed Chair Powell speaks
EUR/GBP technical analysis (daily chart):
The daily timeframe for EUR/GBP shows a clear uptrend, but does that make long positions the higher probability trade? Around current levels, I’d argue not. Sure, we’ve seen a strong 3-day rally and Asian trade has seen it rise for a fourth, but it is worth noting that EUR/GBP saw a lot of volatility around current in the second half of October, which saw several false breaks above the January and March lows before closing the day around or beneath them. And that resulted in a pullback.
EUR/GBP may not be the easiest of pairs to trade, but I am suspicious of any intraday breaks above the Jan / March lows. So if momentum shows signs of waning near the cycle highs, it may be a pair to consider for a cheeky short.
GBP/USD technical analysis (daily chart):
Yesterday I mentioned that I was seeking evidence of a swing low on the GBP/USD daily chart. I suspect we may now have it. The 3-day retracement only spans around half of the strong bullish breakout above 1.22 and trend resistance, and the third day was a bullish hammer. The hammer’s low also found support at the close highs of the prior cycle high, which is why suspect we have reached or are very close to an inflection point.
Bulls could seek a break above Wednesday’s high to assume bullish continuation or, if confident the low is near, seek to enter long within yesterday’s range with a stop somewhere beneath the cycle lows (a wider stop could allow greater levels of intraday volatility).
View the full economic calendar
View the full economic calendar
-- Written by Matt Simpson
Follow Matt on Twitter @cLeverEdge
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the market you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.