EURGBP Down 18 Pips On Hourly Chart, Came Into Today Down For the 2nd Straight Day; in a Downtrend Over Past 14 Days

Hourly Update

(Last Updated September 4, 2020 9:50 GMT)

At the moment, EURGBP’s rate is down -18 pips (-0.2%) from the hour prior. This is the 2nd straight hour EURGBP has seen its price head down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. Most noteworthy in the world of moving averages on the hourly chart is that the 100 and 20 hour moving averages have been crossed, so that price is now turning below them. 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 down 21 pips (0.23%) since yesterday (opening today near 0.88777), marking the 2nd straight day a decline has happened. Compared to its peers in the Forex, EURGBP gave its buyers a return that ranked 26th in terms of percentage change since yesterday. Here is a price chart of EURGBP.

EURGBP

EURGBP Technical Analysis

Coming into today EURGBP is now close to its 20, 50, 100 and 200 day averages, located at 0.8989, 0.9022, 0.8947 and 0.8777 respectively, and thus may be at a key juncture along those timeframes. 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 100 day average, which is 69.8 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 90 day timeframe. Or to simplify this another way, note that out of the past 10 days EURGBP’s price has gone down 7 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURGBP, with 9 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 1.29, which is bullish. As for the rationale, technical traders seem to be citing the appearance of elliott wave and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Oversold at 1 hourIs at key resistance levelIs on 4 hour downtrend lineWaiting for rejection and a crossover on the Stoch RSITrade at your own risk.


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