EUR/GBP Down 47 Pips, Breaks Below 20 and 50 Averages; Evening Star Pattern Appearing on Chart

EUR/GBP Price Recap

0.84476 (USD) was the opening price of the day for EUR/GBP, resulting in yesterday being a day in which price moved down 47 pips 0.55% from the day prior. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 12.28% from the day before — and down 21.8% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/GBP ranked 39th yesterday in terms of percentage price change. Below is a price chart of EUR/GBP.

EUR/GBP Technical Analysis

First things first: EUR/GBP crossed below its 20 and 50 day moving averages yesterday. 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 90 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 15 out of the past 30 days. And for candlestick traders, a special treat: there is a evening star pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 18 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 1.2, 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.