Top Story

EURGBP coiling up in a bullish configuration ahead of U.K Services PMI

Short-term technical outlook on EUR/GBP



click to enlarge charts

Key Levels (1 to 3 days)

Pivot (key support): 0.8870

Resistances: 0.9020 & 0.9060/9100

Next support: 0.8800/8785

Directional Bias (1 to 3 days)

Bullish bias in any dips above the 0.8870 short-term pivotal support for a further potential push up to target the next intermediate resistances at 0.9020 and 0.9060/9100

On the other hand, a break with an hourly close below 0.8870 negates the bullish tone for a slide back to retest the 0.8800/8785 key medium-term support.

Key elements

  • The recent 6-weeks of 540 pips decline from its major range resistance of 0.9100 has stalled at former swing high area of 0.8800 seen in 14 Feb 2019 which also confluences with the 61.8% Fibonacci retracement of the prior multi-month of up move from 12 Mar to 12 Aug 2019 high.
  • The daily RSI oscillator has also staged a rebound right at the significant corresponding ascending support in place since 12 May 2019 and close to its oversold region. These observations suggest that the decline from 12 Aug 2019 is overstretched with the probability of at least a multi-week mean reversion rebound increases at this juncture.
  • In the shorter-term, the EUR/GBP cross pair has staged a bullish exit from a minor descending channel in place since 12 Aug 2019 high with former minor descending channel resistance now acting as a pull-back support at 0.8870.
  • After the recent bullish breakout on 01 Oct 2019, the EUR/GBP has started to consolidate within a minor bullish range continuation “pennant” configuration from is recent minor swing high of 0.8937. In conjunction, the shorter-term hourly RSI oscillator has staged a bullish breakout above a corresponding resistance which indicates a pre-signal for a potential bullish breakout from the “pennant”.
  • The next significant intermediate resistance of 0.9060/9100 is defined by the former swing high areas of 28 Aug 2018/03 Jan 2019 and a Fibonacci retracement/expansion cluster

Charts are from eSignal


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT