EUR/GBP Technical Analysis Summary
Below 0,856
Sell Stop
Above 0,888
Stop Loss
| Indicator | Signal |
|---|---|
| RSI | Neutral |
| MACD | Sell |
| MA(200) | Sell |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
EUR/GBP Chart Analysis
EUR/GBP Technical Analysis
On the daily timeframe, EURGBP: D1 has broken down the 200-day moving average line and is moving towards the lower border of the neutral range. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if EURGBP: D1 falls below the latest down fractal: 0.856. This level can be used as an entry point. Initial risk cap is possible above the 200-day moving average, the last 2 upper fractals, the upper Bollinger band and the Parabolic signal: 0.888. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (0.888) without activating the order (0.856), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - EUR/GBP
The British Central Bank may raise rates. Will EURGBP quotes continue to decline?
Downward movement means the strengthening of the British pound against the euro. The next meeting of the BoE will take place on November 3rd. Market participants do not rule out an increase in the rate by 0.75% - up to 3% from the current level of 2.25%. In September, inflation in Britain reached 10.1% y/y. The data for October will be released on November 16th. The ECB rate is 2%. Its next meeting will not be soon - December 15th. Inflation in the EU in September was almost the same as in Britain and amounted to 9.9% y/y. Preliminary data for October will be published on October 31 and may affect the dynamics of the euro. In addition, the European Union Gross Domestic Product for the 3rd quarter will also be released on October 31 in the first reading (Flash).