EURGBP Down 2 Pips in Last Hour; Moves Up For the 2nd Straight Day

Hourly Update

(Last Updated September 22, 2020 0:16 GMT)

At the moment, EURGBP’s rate is down -2 pips (-0.02%) from the hour prior. EURGBP has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. As for the trend on the hourly timeframe, we see the clearest trend on the 20 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on EURGBP. Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

EURGBP End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURGBP is up 33 pips (0.36%) since the day prior (opening today near 0.91639), marking the 2nd straight day it has gone up. Out of the 40 instruments in the Forex asset class, EURGBP ended up ranking 6th for the day in terms of price change. Below is a price chart of EURGBP.

EURGBP

EURGBP Technical Analysis

The first thing we should note is that EURGBP is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 121.8 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 8 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 11 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 0.65, which is bearish. 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.

The confirmation for this EUR/GBP continuation would be a solid close below the trend line, but for higher reward to risk ratios, candlestick reversals at the APEX are also desired….Key Points:- Caution – Price above the 200 EMA- Caution – Price above the 50 EMA- 50 % Fibonacci Resistance (September High to September Low Range)- Confirmation – Cross of wedge trend line- RSI could break trend and range simultaneously for momentumKey Levels:Support – 50 EMA, 200 EMA, 0.90835, 0.90500Resistance – 0.91900, 0.92150Entry Zone: Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals….Optimal Entry – 0.91865Supporting Entry – 0.91765Candle Reversals for entry- Bearish Shooting Star – Bearish Engulfing- Bearish Dark Cloud CoverThe Risk:As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram