EURGBP trade ideas
EURGBPEURGBP is in reversal zone.
Bullish divergence also shown in RSI.
Market sentiment is also bullish.
we wait and watch for the breakout of last LH
EURGBP - ANALYSISHello friends
I want to share the EURGBP update with you
In the time frame of one year (12 months) , when we look at the chart, the price has been suffering since 2016 in two price ranges between 0.9300 and 0.8300 , and we are currently at the bottom of the one year range, which is the best area to buy. The currency pair is EURGBP
Of course, we should see weakness in the weekly time frame.
Trade safe
EUR/GBP extends drop amid Eurozone concernsThe EUR/GBP is down for another week after giving up its gains last week to close lower, created an inverted hammer/doji candle on the weekly time frame. Following that bearish-looking candle last week, we have seen some subsequent downside follow through so far this week, with rates on course to potentially drop to 0.8300 and potentially even test long-term support at 0.8200 in the not-too-distant future.
With data from the Eurozone consistently disappointing expectations, China’s economy far from its growth goal to support Eurozone exports, you do have to wonder where growth for the Eurozone might come from. That’s why traders are not rushing to buy the euro despite today’s big surge in Chinese equities as a result of the latest round of stimulus measures. While a weaker US dollar is masking the EUR/USD weakness, looking at the EUR/GBP and several other euro crosses is telling.
The 'Chunnel', which is a reference to the Channel Tunnel that connects the UK and Europe, is approaching its post-Brexit lows nearing a band of prior support around 0.8200 - 0.8300. If you think of the troubles facing the UK economy right now, you’d think the EUR/GBP should be 2-3 hundred pips higher than it is right now. This therefore highlights what investors think of the Eurozone economy right now.
Anyway resistance for this pair now comes in around 0.8380 area.
By Fawad Razaqzada, market analyst with FOREX.com
#EURGBP 1 DAYThe EUR/GBP pair on the 1-day chart has now entered a demand zone, indicating that the price has reached a key level where strong buying interest is typically expected. This presents a potential buy opportunity as the demand zone could act as a support level, leading to a price rebound. Traders might look for confirmation signals such as bullish candlestick patterns, increased buying volume, or other technical indicators that suggest the start of an upward move. This zone often represents a favorable risk-to-reward ratio, making it an attractive entry point for long positions. However, as always, it's important to apply proper risk management to account for the possibility of further downside movement.
EUR/GBP Exchange Rate Hits 29-Month LowEUR/GBP Exchange Rate Hits 29-Month Low
According to today’s daily chart of EUR/GBP:
→ The rate is around £0.832 per euro – the lowest since April 2022.
→ The RSI indicator has dropped into oversold territory.
Yesterday, the EUR/GBP rate fell by 0.71%, driven by bearish sentiment following the release of PMI indices, which indicated a slowdown in the Eurozone economy.
According to Forex Factory:
French Flash Manufacturing PMI: actual = 44.0, expected = 44.3, previous = 43.9;
French Flash Services PMI: actual = 48.3, expected = 53.0, previous = 55.0;
German Flash Manufacturing PMI: actual = 40.3, expected = 42.4, previous = 42.4;
German Flash Services PMI: actual = 50.6, expected = 51.1, previous = 51.2.
Meanwhile, PMI indices for the UK remain above 50, signalling economic growth.
Flash Manufacturing PMI: actual = 51.5, expected = 52.3, previous = 52.5;
Flash Services PMI: actual = 52.8, expected = 53.5, previous = 53.7.
Technical analysis of the EUR/GBP chart today shows the price moving within a descending channel (marked in red).
In September, the price bounced off the £0.840 level, which had acted as support since June. The price movement formed an arc (shown by an arrow), suggesting that:
- Demand is weakening.
- The median line of the red channel is acting as resistance.
If bears maintain control of the market, the EUR/GBP rate could fall towards the lower boundary of the red channel.
However, if bulls attempt to recover, the price may face strong resistance at the £0.840 level.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
EUR/GBP 4H Accumulation Outlook: Detailed Technical AnalysisMarket Context:
The bearish trend has been established with the clear formation of a Bearish Order Block at the top left, and price has respected this level, indicating a continuation of the downtrend. The market has created a structure that suggests potential accumulation.
Wyckoff Accumulation Phases:
The chart is segmented into Wyckoff accumulation phases, specifically:
Phase A: Selling Climax (SC) marks the first bottom, and the Automatic Rally (AR) creates the initial reaction. This is followed by a Secondary Test (ST), which revisits the lower price levels, solidifying the phase.
Phase B: Represents the building of the cause, with minor upswings and a re-distribution of the asset.
Phase C: The price dips into ST in Phase B, signaling that we may have reached the final downside before an upward reversal. This corresponds with Wave 5 completion in the Elliott Wave structure.
Elliott Wave Theory:
The analysis overlays Elliott Wave count, and currently, we are at the completion of Wave 5, which aligns with the Wyckoff SC point, suggesting a potential reversal. After the completion of Wave 5, we anticipate the beginning of an ABC corrective pattern, which will likely play out through Phases B and C of Wyckoff.
Key Levels and Fibonacci Retracement:
The price action is hovering around the 0.618 retracement level (0.85084), which is a key Fibonacci level that often signals a potential reversal.
0.382 (0.84722) and 0.786 (0.8556) Fibonacci levels are also marked, indicating zones where price might react on the way up during the correction.
Order Flow and SMC Concepts:
The POC (Point of Control) is sitting at 0.8508, and there is clear mitigated order flow above the current price, suggesting that any reversal will need to overcome this level. The Buy Side liquidity is marked, and the price could aim to break through this zone after retesting lower areas.
A key Breaker Block is formed, and the strong close at W close (Weekly close) gives further confidence that we may see a bullish breakout, although confirmation is required through price action.
Harmonic Projections:
Projected harmonic patterns suggest an upward movement from this accumulation. The 1.85 extension is marked, indicating the potential final target for the next bullish leg. The lower high formation aligns with Phase D, where the price is expected to test the resistance and create a Last Point of Support (LPS) before confirming a bullish trend.
Expected Outlook:
In the near term:
A minor retracement or pullback is expected from the current support level (0.83140), and a test of 0.84640 is likely.
The market may shift from Phase B to Phase C of Wyckoff, with LPS being tested around 0.8508.
Break of resistance at 0.85084 would confirm the reversal, leading towards higher price levels, eventually targeting 0.8556 or beyond in the Phase D of accumulation.
This combination of Wyckoff, Elliott Wave, and SMC gives us a clear strategy: monitor the LPS test and watch for price action signals for confirmation of reversal.
The structure points to a potential bullish breakout, but risk management is critical in case the market invalidates this outlook. A break below the SC support level would suggest further downside movement.
Buy OpportunityTrade Idea: Buy EUR/GBP
Entry: 0.83300
1st take Profit: 0.83817
2nd Take Profit: 0.84813
Rationale:
Technical Analysis: EUR/GBP has shown strong Support near the 0.83100 level, with recent price action indicating potential for an upword move.
Resistance Break: A breakout above recent Support suggests Bearish momentum could carry the pair towards the 0.82500 level.
Risk Management: Place a stop-loss according to your risk tolerance and trading strategy, ensuring potential losses are controlled.
Disclaimer: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The analysis provided is for informational purposes only and should not be considered as investment advice.
EURGBP still BearishAfter consolidation for weeks, EURGBP finally broke the trendline support, and the price failed to maintain its upward momentum by staying above the moving average. It appears that bearish momentum is inevitable, and buyers have lost momentum to the upside.
EURGBP a brief opportunity for BULLSThe pair is under immense pressure from Bears. It is almost hitting the bottom rock in short term. The Divergence on RSI shows the Bulls are gaining some ground. If the price breaks the recent high we may initiate the long entry. The resistance lies at perfect at 1:1 risk to reward ratio.
Strict money management is advised for Profitable trading.
EURGBP bear flag in full swing. Intraday Update: The EURGBP intraday RSI's are very oversold as the EURGBP breaks lower. The 127% extension at .8314 is the near term target, however the RSI's may allow for a near term bounce, but any move back to the .8380's should find sellers now.
Check the trend It is expected that the upward trend will end in the current resistance range and we will see the beginning of the corrective trend. With the breaking of the resistance range, the continuation of the upward trend will be likely
Sell Trade Idea for EUR/GBPDescription
The EUR/GBP currency pair, representing the exchange rate between the Euro (EUR) and the British Pound (GBP), presents a potential sell opportunity due to key economic fundamentals:
- **UK Economic Resilience:** Despite global economic uncertainties, the UK economy has shown signs of resilience, driven by strong employment data and consumer spending. The Bank of England’s relatively hawkish stance on interest rates could further support the strength of the GBP.
- **Eurozone Challenges:** The Eurozone is currently facing multiple economic challenges, including slow growth, inflationary pressures, and concerns about energy security. These issues could weigh heavily on the Euro, making it less attractive compared to the Pound.
- **Diverging Monetary Policies:** While the Bank of England is focused on managing inflation through potential interest rate hikes, the European Central Bank (ECB) remains more cautious, which may create downward pressure on the Euro relative to the Pound.
Given these fundamentals, a sell position on EUR/GBP could take advantage of the diverging economic outlooks and monetary policies between the Eurozone and the UK.
Disclaimer
Trading in the forex market involves substantial risk and is not suitable for all investors. The content provided is for informational purposes only and should not be considered financial advice. Forex markets are highly volatile and influenced by various economic and geopolitical factors. Always perform your own research, consider your risk tolerance, and consult a qualified financial advisor before making any trading decisions. Past performance does not guarantee future results.
EURGBP: Strong Bearish Signal Detected 🇪🇺🇬🇧
EURGBP broke and closed below a key daily horizontal support.
After a breakout, a broken structure was retested and the price
formed a narrow horizontal range on that.
A breakout of the support of the range with a high momentum bearish candle
this morning is a strong intraday bearish confirmation.
The price may keep falling now at least to 0.836
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EURGBP SHORTSMassive H&S Pattern printed and confirmed on Daily timeframe
I have been monitoring this pair for it to present lower high which has been fulfilled at 38.2 Fib level
EMA's on majority timeframes are bearish
along with GBP strength coming in towards the end of last week
On the 1hr timeframe as will shown below price has broken below the previous M Supp level and has retested and respected this level and come lower I'm currently already short as shown in image
ICMARKETS:EURGBP
$EURGBP | Sell Trade | Market Exec |Technical Confluences:
Price action is bounced off an Interest Zone and created a newer low
Price is breaking through a support trendline
To note, Stochastics is moving into Oversold conditions but fundamentally, there is support for OANDA:EURGBP to be weaker
Fundamental Confluences:
This FX pair is a trade-related pair and normally doesn't move much against one another unless there is a change in fiscal or monetary front
In this sense, we got a gauge of how both central banks, ECB and BOE stance are. ECB is taking on a data dependent stance and is trying to resist cutting interest rates while BOE sent out a hawkish note the other day that majority of them do not want to cut rates
Naturally from a yield perspective, holding GBP compared to EUR is more attractive and this is what we are aiming for.
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Will be taking on a short OANDA:EURGBP position when market reopens on Monday.
This trade may take some time to complete as it there is normally not much action with this pair except during London's trading hours.
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Change the trend It is expected that the continuation of the downward trend will be formed up to the specified support range. Then, according to the behavior of the price in this range, there will be a possibility of changing the trend
EUR/GBP SELL PRESSUREGetting more more distribution to the downside in the EUR/GBP creating lots of orderblocks for perfect entries confirmed by the MACD divergences...
Bear Flag w/Confirmed Bearish Break - EGHere I have EUR/GBP on the Daily Chart!
Price gave a Bearish Break to the Ascending Channel which confirms we are seeing a Bearish Flag.
-The Volume behind the Candle that Broke the Ascending Channel signifies that it was a Strong and Valid Break
Being a Continuation Pattern, I suspect we will see Price Retest the Break of the Ascending Channel and continue Downward!
-Looking for a retest in the ( .8430 - .8435 )
Indicators:
- Price trading Below 200 EMA
- RSI Below 50
- BBTrend Printing Strong Red Bars
- Volume showing Bears accumulating
EUR/GBP - So close.. So close and yet so far..
So close to the lows zone and yet so far from our entry..
We need to wait for a good pullback to continue selling!
Sometimes you have to be patient, and other times you have to pull the trigger.
If the outlook is good, the strategy always adapts.
If you liked it, don't forget to like and follow me! :)
EURGBP is heading downEuro is declining against the British Pound: the technical structure points to an increased probability of downtrend, as two trading ranges (one intraday, and one consisting of several days) were broken simultaneously.
Fundamentally, the British pound gains strength after BOE had left the interest rate unchanged, pushing pound sterling against other currencies, and, particularly, Euro.
Always DYOR and manage your risk at all times!
EUR-GBP Support Ahead! Buy!
Hello,Traders!
EUR-GBP is falling down
Just as I predicted but
The pair will soon hit a
Horizontal support level
Of 0.8382 from where
We will be expecting a
Local bullish correction
Buy!
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EURGBP Massive Long! BUY!
My dear friends,
My technical analysis for EURGBP is below:
The market is trading on 0.8393 pivot level.
Bias - Bullish
Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bullish continuation.
Target - 0.8415
Recommended Stop Loss - 0.8382
About Used Indicators:
A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames.
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WISH YOU ALL LUCK
