EUR/GBP has gained over 400 pips since mid-August. The pair is currently trading at 0.8762 with immediate support levels at 0.8723 and 0.8683. The intraday resistance levels are at 0.8794 and 0.8825. Someone primarily attributed the gains to the weakness in British Pound which is under pressure following UK’s GDP and inflation data during the last week. However, on the first day of this new week, most of the indicators are showing an overbought condition, which may help bears drag the prices slightly lower in the coming days.
EUR/GBP Technical Snapshot
The Relative Strength Index (RSI) and Stochastic are currently showing overbought zones that may help bears bring the price slightly lower towards the 0.8723 support level. The Average True Range (ATR) shows low volatility, while the Bollinger band is neutral. The MACD keeps above the zero line. EUR/GBP pair keeps above the 20, 50, and 100-period moving averages.
|
Stochastic |
Bollinger Bands |
ATR |
MACD |
RSI |
|
Overbought (92) |
Neutral (0.8763) |
0.0056 (Volatility down) |
Above Zero line (-0.0067) |
71 (overbought) |
The moving average is a handy technical indicator and is ideal for determining the market direction. The moving average indicator is also used for support and resistance levels. If the moving average line remains below the current price, it acts as a support line. Likewise, if the moving average remains above the current price, it acts as a resistance line. However, its worth noting that the moving average is a lagging indicator meaning it does not have a forward-looking ability.
Related Article: Gold (XAUUSD) Forecast and Trading Idea
EUR/GBP KeySupport and Resistance Levels
|
Support 1 |
Support 2 |
Support 3 |
Resistance 1 |
Resistance 2 |
Resistance 3 |
|
0.8723 |
0.8683 |
0.8652 |
0.8794 |
0.8825 |
0.8865 |
The support and resistance levels help traders identify the areas from where the market can move in the opposite direction. It is essential to know that when support or resistance is breached, its role will reverse. Meaning a breached support line will act as a resistance area. Similarly, a breached resistance line will act as a support line for future price movement. Fxdatapanel has a high-end algorithm for calculating the support and resistance levels.
EUR/GBP Pivot Points
|
1 hour |
4 hours |
Daily |
Weekly |
Monthly |
|
0.8762 |
0.8764 |
0.8754 |
0.8724 |
0.8548 |
EUR/GBP Trading Ranges
Daily Trading EURGBP Range: 0.8759 – 0.8771
Weekly Trading EURGBP Range: 0.8759 – 0.8771
Monthly Trading EURGBP Range: 0.8566 – 0.8784
Yearly Trading EURGBP Range: 0.8203 – 0.8784
Related Article: EUR/CAD Forecast and Daily Trading Idea
EUR/GBP rade Signal 19-SEP-2022
EUR/GBP is currently trading at a multi-year high, and it is attributed mainly to the weakness in the British Pound. However, having made huge gains, the overbought indication from several indicators suggests a small correction phase. The nearby resistance areas and Fxdatapanel’s algorithm also suggest a minor correction, which makes the EUR/GBP pair ideal for intraday sell entries using the following levels.
EURGBP Signal Direction: Sell
Signal Timeframe: Daily
Signal Strength Level: Normal
Entry: 0.8799
Stop-loss: 0.8855
Take Profit: 0.8743
It’s worth noting that the pair’s uptrend is intact so far, and only a close below 0.87000 will be the first indication of a possible change in the trend’s direction.
EURGBP Future Forecast
The 0.8723 is the first strong support level; the drop may not extend below this level. However, a breach below this level will help bears extend the downside towards 0.8683 and 0.8652. On the upside, an intraday closing above 0.8800 is needed for the bullish momentum to continue and target the next hurdles at 0.8825 and 0.8865 resistance areas.
Click here to download EURGBP’s complete smart analysis report from the Fxdatapanel. FXDatapanel is the first and the only Forex trading signals platform. It allows traders to generate trade signals using their equity size, risk exposure, and many other things.
Sign up for a free, fully functioning 10-day demo account today.