EUR/GBP 2 Day Down Streak Ended; Eyes 20 Day Average

EUR/GBP Price Recap

EUR/GBP is down 21 pips (0.25%) since yesterday (with its current price near 0.84264), marking the 2nd day in a row it has gone down. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 11.83% from the day prior, but down 9.48% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/GBP ended up ranking 35th for the day in terms of day-over-day price change. The price chart of EUR/GBP below illustrates.

EUR/GBP Technical Analysis

The first thing we should note is that EUR/GBP is now close to its 20, 50 and 100 day averages, located at 0.8468, 0.8481 and 0.8581 respectively, and thus may be at a key juncture along those timeframes. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 16 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 14 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 0.93, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

I think EURGBP has completed Fib retracement of 61.8% @ 0.8443, this was also a retest of the new support of the downwards channel.Target T.P 0.85921 , this is at the resistance zone of both the new upward channel and the horizontal resistance zone.