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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Euro vs USD Forecast: EUR/USD Gears up to 1.1200 Handle – What’s Next? More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2019/12/13/Euro-vs-USD-Forecast-EURUSD-Gears-up-to-1.1200-Handle-Whats-Next-MK.html/?CHID=9&QPID=917714 https://t.co/DkAGBJlDTH
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/gfDv4QcaZ7
  • RT @JMahony_IG: 2019 vs 2017. Incredible to see the decimation of Labour votes in their traditional heartlands. https://t.co/jEDc3aNNkV
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/Ha25p32Ax2
  • 🇬🇧 GBP BoE/TNS Inflation Next 12 Mths (NOV), Actual: 3.1% Expected: N/A Previous: 3.3% https://www.dailyfx.com/economic-calendar#2019-12-13
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/vvSaRzqnyk
  • USD/CHF IG Client Sentiment: Our data shows traders are now at their most net-long USD/CHF since Jun 26 when USD/CHF traded near 0.98. A contrarian view of crowd sentiment points to USD/CHF weakness. https://www.dailyfx.com/sentiment https://t.co/luvd6aOalw
  • FTSE 100 +1.69% @ 7409 FTSE 250 +4.43% @ 21710 #ftse #equities @DailyFXTeam
  • Heads Up:🇬🇧 GBP BoE/TNS Inflation Next 12 Mths (NOV) due at 09:30 GMT (15min), Actual: N/A Expected: N/A Previous: 3.3% https://www.dailyfx.com/economic-calendar#2019-12-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.79%, while traders in France 40 are at opposite extremes with 78.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JT9th5spHe
EUR/GBP Technical Analysis: Euro Prices Awaiting Range Breakout

EUR/GBP Technical Analysis: Euro Prices Awaiting Range Breakout

2018-11-30 04:30:00
Daniel Dubrovsky, Analyst
Share:

EUR/GBP Technical Analysis

  • EUR/GBP appears to be transitioning into a consolidation mode for the time being
  • Upper boundary of the range around 0.89394 while the lower one is near 0.88108
  • A climb above the range exposes 2018 high, a descent meanwhile eyes April lows

Just started trading EUR/GBP? Check out our beginners’ FX markets guide!

Since we last took a look at EUR/GBP, the pair was struggling to confirm a break above a falling trend line from August. Confirmation via more closes to the upside could have meant a lasting uptrend to come. But, that was not the case as anticipated. The pair fell instead, but lasting downside progress was not achieved and we are now back to where we left off.

With that in mind, the Euro appears to be transitioning into a consolidation mode against the British Pound. EUR/GBP is sitting squarely at the edge of a horizontal range of resistance between 0.89235 and 0.89394. Looking below, near-term horizontal support is between a range of 0.88384 and 0.88108. Until we get a clear cut push outside of either barrier, more oscillation may be in store next.

In the event that either barrier is breached, it could carry with it implications of the next dominant trend. With prices at resistance, let’s take a look at where a push higher could lead to. First up would be a rising range of support (red channel on the chart below) that was first broken in early October and retested at the end of the same month. Sitting above that is the September 21st high at 0.89957.

Ascending through those areas of interest may eventually lead to a test of the August 28th high at 0.90986 which is currently the 2018 peak. Conversely, a descent through support exposes the 38.2% Fibonacci extension at 0.87634. Beyond that lies another horizontal range of support, but this one is between 0.86983 and 0.86683. Closing under this area would open the door to an 8-month low.

EUR/GBP Daily Chart

EUR/GBP Technical Analysis: Euro Prices Awaiting Range Breakout

**Charts created in TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.