EUR/GBP Heads Down For the 2nd Day In A Row, Price Base in Formation Over Past 90 Days; Social Sentiment Biased Towards Selling

EUR/GBP Price Recap

EUR/GBP is down 67 pips (0.77%) since yesterday (with its current price near 0.86471), marking the 2nd day in a row a decrease has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 24.51% from the day prior, but up 42.44% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/GBP ranked 37th yesterday in terms of percentage price change. The price chart of EUR/GBP below illustrates.

EUR/GBP Technical Analysis

Notably, the current price of EUR/GBP is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Price action traders in particular will want to note that the 90 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 4 buy signals on our radar and 25 sell signals. This imputes a buy/sell ratio of 0.16, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

FX:EURGBP as we can identify that EU is working hand in hand with EG and they are both at their pivot points as you can see from my last trade….but now we are focusing on EG and it has given us a double top pattern in preparation to fall to its death….we see there is an uptrend but we are not going to trade with retail traders and buy but we will simply follow the actual new trend of the and fall with the pair to the midrange zone of the channel.