The EURGBP pair looks to have topped around the 0.8600 price level and has sold off aggressively from potential being “overvalued” in recent days. Bearish EU news is hitting the euro currency hard.
Additionally, the concerns about gas supplies for the winter have investors moving out of Europe, which is causing significant pressure on the EURUSD, which tends to harm the EURGBP pair if sterling is holding firm.
The EU recently passed a watered-down conservation plan that called for EU countries to cut gas use by 15% from August through to March next year. This plan has not impressed market participants.
It should also be noted that reports are surfacing that incumbent British PM Boris Johnson may not step down after all. This has clearly given the British pound a boost on the FX market.
With this in mind we have to examine how cross-currency pairs actually work. Weakness pitted against strength in currencies is the ultimate play. When one currency is heading lower and the other higher it really is a currency traders intraday dream.
According to the technicals a run towards the 0.8200 support level could be on the cards for the EURGBP pairs starts to ignite a large head and shoulders pattern on the lower time frames.
The ActivTrader platform shows that bullish sentiment is rising, with some 73 percent of traders now expecting more upside in the EURGBP pair despite the recent price collapse.
Overall, this should be very bearish for the EURGBP pair because a big sentiment shift has happened. Last week 58 percent of traders were bullish.
EURGBP Short-term Technical Analysis
The four-hour time frame shows that the EURGBP pair is technically bearish over the short-term with the price trading slightly below its key 200-period moving average, around the 0.8550 area.
A head and shoulders pattern has recently formed and is projecting a move towards the 0.8200 level if weakness persists below the 0.8400 technical region.
See real-time quotes provided by our partner.
The ActivTrader platform shows that bullish sentiment is rising, with some 73 percent of traders now expecting more upside in the EURGBP pair despite the recent price collapse.
Overall, this should be very bearish for the EURGBP pair because a big sentiment shift has happened. Last week 58 percent of traders were bullish.
EURGBP Short-term Technical Analysis
The four-hour time frame shows that the EURGBP pair is technically bearish over the short-term with the price trading slightly below its key 200-period moving average, around the 0.8550 area.
A head and shoulders pattern has recently formed and is projecting a move towards the 0.8200 level if weakness persists below the 0.8400 technical region.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |