EUR/GBP Up 29 Pips, in a Downtrend Over Past 14 Days; Morning Star Pattern Appearing on Chart

EUR/GBP Price Recap

0.83295 (USD) was the opening price of the day for EUR/GBP, resulting in yesterday being a day in which price moved up 29 pips 0.35% 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 35.17% from the day before — and down 34.12% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/GBP ranked 2nd yesterday in terms of percentage price change. Here is a price chart of EUR/GBP.

EUR/GBP Technical Analysis

Coming into today EUR/GBP is now close to its 20 and 50 day averages, located at 0.8429 and 0.8468 respectively, and thus may be at a key juncture along those timeframes. 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 14 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 10 days EUR/GBP’s price has gone down 7 them. Also, candlestick traders! Note we see morning star pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 34 buy signals on our radar and 20 sell signals. This imputes a buy/sell ratio of 1.7, which is bullish. 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.

Reasons:- Trend line is broken up- Price seems to formed a accumulation period- Bullish divergence between price and oscillators – Bollinger bonds gained positive slopeThis is only how we interpret the market