• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Forex News

EUR/GBP Risk of Hard Brexit Returns as Channel Forms

Forex Tips by Forex Tips
October 1, 2020
in Forex News
0
A Possible Reversal on the Horizon
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


EUR/GBP Forecast:

*** UPDATE *** Since this story was published there has been a notable move higher in Sterling on market talk that the EU and UK may be moving closer to a deal. A tweet from the Whitehall correspondent for the FT , Sebastian Payne, said that ‘officials in London are increasingly optimistic (about) a Brexit deal’ although an insider warned that ‘it’s going to go to the brink’. Neither the EU or the UK has commented on the fresh bout of optimism and so Sterling’s move higher may come back under pressure if one, or both sides, turn the mood negative again.

Hopes Surrounding a Brexit Deal Remain Gloomy

With just three months left until the end of the Brexit transition period, the EU and UK continue to clash over the terms of a deal as the last round of negotiations commenced this morning at the EU Summit which is being held in Brussels over the next two days. While the European Commission had given the British government until 30 September 2020 to withdraw provisions from its Internal Market bill, failure to meet this deadline has now resulted in European Commission President, Ursula von der Leyen, threatening legal action against the United Kingdom.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

Upon release of the news that the two economies cannot agree on state aid, GBP lost traction against its Euro counterpart, temporarily driving price action above the psychological level of 0.91, but bulls failed to maintain control. Meanwhile, the Fibonacci retracement levels taken from the move between February 2020 (low) and March 2020 (high), continue to form support and resistance levels, holding both bulls and bears at bay.

Trading Forex News: The Strategy

Trading Forex News: The Strategy

Recommended by Tammy Da Costa

How can news impact your trades?

EUR/GBP Daily Chart

EUR/GBP Daily Chart

Chart prepared by Tammy Da Costa, IG

Price Action Confined to Potential Breakout Channel Formation

From an intraday perspective, the four-hour chart below highlights a potential breakout channel formation, while the Moving Average Convergence/Divergence (MACD) remains below the zero line, a possible suggestion that the pair may still be oversold.

Starts in:

Live now:

Oct 01

( 15:10 GMT )

Join James Stanley’s Price Action Webinar

Trader’s Toolbox: How to Identify Price Trends with Trader Sentiment

Register for webinar

Join now

Webinar has ended

EUR/GBP Four-Hour Chart

EUR/GBP 4 Hour Chart

Chart prepared by Tammy Da Costa, IG

EUR/GBP: Strategy Ahead

If bulls are able to push above the channel, a bullish breakout may be possible, with the next level of resistance holding at 0.92.

However, if further downward pressure is exerted, the 38.2% retracement level will be the next level of support at 0.90361.

{{Webinar| 586549347|Learn how to identify trends with trader sentiment}}

In terms of IGCS, at the time of writing, 54% of retail traders are holding short positions in EUR/GBP but for now, sentiment remains bearish.

Euro Pound Forecast: EUR/GBP Risk of Hard Brexit Returns as Channel Forms

— Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707





Source link

Share76Tweet47

Related Posts

US Dollar Rebound in Focus Ahead of US Presidential Inauguration

by Forex Tips
January 16, 2021
0

US Dollar Talking PointsThe US Dollar Index (DXY) breaks out of the range bound price action from the first...

USD/ZAR Tests Key Fibonacci Support

by Forex Tips
January 15, 2021
0

Rand Dollar Price Action: USD/ZAR price action edged higher today, buoyed by a decrease in demand for Emerging Market...

US Dollar Fundamental Outlook: USD/SGD, USD/MYR, USD/IDR, USD/PHP

US Dollar Ranges Ahead of Biden Aid Plans

by Forex Tips
January 14, 2021
0

USD/JPY PRICE OUTLOOK: US DOLLAR VOLATILITY STILL HINGES ON TREASURY YIELDS, BIDEN STIMULUS DETAILS & FED-SPEAK IN FOCUSUSD/JPY price...

USD Price Action Eyes Biden Stimulus Proposal

USD Price Action Eyes Biden Stimulus Proposal

by Forex Tips
January 13, 2021
0

USD PRICE OUTLOOK: US DOLLAR ADVANCES DESPITE SLIPPING TREASURY YIELDS, BIDEN SET TO UNVEIL STIMULUS PACKAGEUS Dollar pushed higher...

What is it & Why Should Traders Care?

What is it & Why Should Traders Care?

by Forex Tips
January 12, 2021
0

Implied volatility, synonymous with expected volatility, is a variable that shows the degree of movement expected for a given...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.