EURGBP Bullish Flag Pattern
Weakness below 0.8450 immediate support seems to continue exerting further downward pressure, dragging the cross towards 0.8400 handle. A follow through selling pressure below 0.8400 handle is likely to extend the near-term corrective move, initially towards 0.8340-35 intermediate support and eventually towards its next major support near 0.8300-0.8280 region (Technical-Analysis Forex).
EURGBP Short | Technical Analysis
After a strong run higher in the wake of Brexit, is the pair on the brink of a corrective move? The move to £0.8625 has been met with three days of consecutive closing negative candles, in a move which is pulling momentum indicators, with a bearish cross on the Stochastics (not yet a confirmed sell signal) and the RSI turning lower to be on the brink of a basic crossover sell signal today. The hourly chart shows a small top pattern has completed on a move below £0.8488 which implies £0.8350 as a near term target (Technical-Analysis Forex).
Long EURGBP Technical-Analysis Forex
The European cross is navigating multi-day lows in the vicinity of 0.8470 on Tuesday in a context dominated by the risk-on sentiment. In fact, the resurgence of the preference for the riskier assets is helping both the sterling and the single currency today, prompting the cross to extend the drop from last week’s fresh cycle highs near 0.8630.
EURGBP Possible Short Trade
The British Pound continues to gain traction against its European counterpart, with the EURGBP cross extending its corrective move for fourth consecutive session to currently trade near 0.8450 level. The cross is now losing 0.47% at 0.8474 and a breakdown of 0.8383 (23.6% Fibo of 0.7595-0.8627) would expose 0.8218 (20-day sma) and then 0.8202 (low Jun.29). On the flip side, the initial hurdle is located at 0.8627 (2016 high Jul.6) ahead of 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013) (Technical-Analysis Forex).
The Euro/Pound represents a cross between two biggest economies in Europe – the Euro-zone and the United Kingdom. Given the economic proximity and interdependence between the two, the pair is significantly less volatile than many other Euro or Pound based crosses.