EUR/GBP Down 3 Pips; Pin Bar Pattern Appearing on Chart

EUR/GBP Price Recap

0.83657 (USD) was the opening price of the day for EUR/GBP, resulting in yesterday being a day in which price moved down 3 pips 0.03% from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 4.69% from the day prior, and up 24.58% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/GBP ended up ranking 22nd for the day in terms of day-over-day price change. Here is a price chart of EUR/GBP.

EUR/GBP Technical Analysis

Notably, EUR/GBP is now close to its 20, 50 and 100 day averages, located at 0.841, 0.8462 and 0.8539 respectively, and thus may be at a key juncture along those timeframes. In addition to the moving average crossover, EUR/GBP may have broken its trend on the 14 day basis, as the trend’s momentum appears to be slowing down. Volatility for EUR/GBP has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 9 out of the past 14 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

A final note on correlations: in the recent most week, EUR/GBP has been most correlated with GBP/CHF — not terribly surprising, given that GBP is in both currency pairs. On the flip side, in terms of pairs with the least correlation to EUR/GBP, GBP/CHF is the pair that holds that distinction for the past two weeks.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 3 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 0.6, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a gartley technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURGBP has met my requirements for a Harmonic GARTLEY Pattern-Entry is around 1.83100 found at the previous Supply -Divergence appeared on the 4HR RSI at the Entry Zone-Target 2 is around 1.84440 based from the highlighted mitigation candlestick -Price has broken 50 EMA and is currently resting previous structure….~Looking to add more positions after the restest of this structure, patiently waiting on the continuation As always if you found this idea helpful, please let me know by hitting that like button and/or leaving me a comment below….The more ideas we can generate the more informative these ideas become for newer traders.