Eurgbptrend
Euro vs Pound (EURGBP) analysis: Who is the least bad?EUR/GBP fundamental analysis
The Bank of England (BoE) raised its Bank rate by half a percentage point to 1.75 percent at its August meeting, the highest rate hike in 27 years, owing to elevated inflationary pressures exacerbated by Europe's recent gas crisis.
However, the pound did not surge following the rate announcement since the Bank of England's policy statement painted a bleak economic picture for the coming years, due to a sluggish growth and persistently high inflation outlook. "GDP growth is slowing," and the UK is now expected to enter recession in the fourth quarter of this year, while inflation is forecasted to peak at 13.3% in October.
As the BoE will now take a data-dependent approach, the pound cannot rely on its rate divergence advantage against the euro any longer. Markets will be less concerned about the BoE-ECB policy divergence and more focused on economic indicators in the coming months.
Given that the two economies are exposed to similar shocks and negative effects real incomes and consumption, a sideways phase, characterised by fairly tight trading ranges, could therefore come forward for EUR/GBP in the near term, pending more information on the length and size of the upcoming recessions.
EUR/GBP technical analysis
On a technical level, 0.849-0.85 already represents an area where the euro could see selling pressure. Downwards, 0.834 has shown solid support over the past weeks, despite the market pricing in the BoE’s 50 basis point hike in advance.
Rising RSI and MACD attempting a bullish crossover can provide the EUR with a very slight tailwind in the very short term. However, the single currency lacks the catalysts that could lead to a material appreciation against the pound.
The 5-year yield spread between Germany and the United Kingdom, which has been strongly correlated with the EUR/GBP exchange rate, should be constantly monitored, to keep track of the relative growth outlook between the Euro Area and the UK economy.
EURGBP: Ascending channel breakdown leading to a trend reversal?The UK July PMIs show a slowing in the rate of expansion in both the service and manufacturing sectors. The UK Services PMI Business Activity Index fell to 53.3 in July, down from 54.3 in June, hitting a 17-month low. The manufacturing PMI in the United Kingdom fell to 52.2 from 54.3 in June, reaching a 25-month low.
Capacity constraints due to a lack of materials and employees were the factors behind the slowdown in output growth. However, input cost inflation moderated, new order volumes increased, and private sector employment rose.
The UK PMIs prints in July are also broadly in line with what analysts predicted, and they outperformed peers (such as the EU).
The pound against the dollar ( GBP/USD ) is flat today. The pound, on the other hand, is gaining ground against the euro ( EUR/GBP ), as preliminary PMIs readings for the Euro Area already reveal that economic activity contracted in July. This means that the Eurozone may enter a recession before the United Kingdom.
On the EUR/GBP 1-hour chart, a breakdown below the short-term ascending channel is now visible. If confirmed by today's close, this could lead to a short-term bearish reversal for EUR/GBP , with a target of 0.84 (July 13 lows).
EURGBPWe have had some muddy price action since the previous post (linked on Related Ideas) but the general bias has not changed on this pair; we are still waiting for that bearish move. It is best practise to let your trades hit your set SL or TPs while managng it in between. If you can resist the temptation to keep fiddling with your SL and TP for long periods you will realise how it makes you a more disciplined and calm trader .
Goodluck!
Euro against pound is ready for long Hi everyone in the TradingView community. I am Rana Sarmad I like to share and talk about trading strategies. If you are a member of my subscribers list and like my ideas, please don't hesitate to let me know by hitting that Like button and growing my notification count!
We are going to discuss about FX:NZDCAD
We can see market is strugling near its previous resistance and currently standing near its a strong support in D1 Support level.
So we are expecting more rise near Trendline,Then we can expect a strong bull run after the formation of Head and shoulder.
This is my opinion, I really hope this will be useful for you.
This is not a financial advice. Always take trade at your own risk,
Be ready and take care your money. Have a great profit !
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EURGBP - FUNDAMENTAL AND TECHNICAL VIEW#EURGBP
- Currently the MARKET SENTIMENT for EURGBP is on the DOWN SIDE. The main reason for that is the NEGATIVE RISK SENTIMENT for EUR. The reason for NEGATIVE SENTIMENT in EUR is USD DEMAND. Due to MARKET RISK OFF, all MARKETS including STOCKS are DOWN. It affects the EUR in a big way.
- Definitely, EURGBP can fall to the SUPPORT LEVEL below. The reason for that is that there is a good UP SIDE BIAS in the MARKET for USD, so EUR has NEGATIVE SENTIMENT at the moment. Accordingly, EURGBP can go down to 0.8352 LEVEL. And after that EURGBP can be BUY to the 0.8711 LEVEL.
EURGBP - SHORT - BASIC SUPPORT & RESISTANCE ANALYSISEURGBP - SHORT - BASIC SUPPORT & RESISTANCE ANALYSIS
In this chart, im looking from 3 perspective.
1) Supply & Demand
2) Trend
3) Significant S&R Level.
SL - 20 PIP
TP : RR / 60
#TAYOR
My main indication is the H4 Double top has been consume at price 0.86764. Which make the movement is bearish .
From that point of view, the price respected the trend point of view. Then price doing engulfing movement which i circle in the picture.
So my point of view, it's relevant to take short at PRICE : 0.85986 as its the only price that near fresh base and significant resistance level .
#EURGBP
EURGBP BULLISH OUTLOOKEUR is gaining in value due to the expectation that ECB will raise interest rates, something that had not happened in more than a decade.
Against GBP the price broke the resistance of the triangle pattern on the 4H graph forming a bullish outlook, which, if gets confirmed, might see the price of the pair testing 0.87 On the other hand, if the bullish scenario does not come to fruition, the price will most likely test the support of the triangle at 0.8568
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EURGBP - Elliott Wave forecast45 angle describes the corrective nature of the pattern.EURGBP has started forming impulsive wave C's sub-wave 3.
It has broken down the correction channel of wave B.
If EURGBP breaks down low of wave X at 0.84819 , then the price will complete its impulse wave C. It is also a support level of 200 EMA. Or it will start marching upward.
Targets: 0.84500 - 0.84421 - 0.84340 and more.
Thank you!
@Money_Dictators
EURGBP - FUNDAMENTAL AND TECHNICAL VIEW- EUR FEATURE currently stands at 1.0759 LEVEL. We can see a slight UP TREND today compared to the previous days. The reason for this is that ECB has given a very HAWKISH CENTRAL BANK UPDATE.
Its price is slightly higher than EURGBP DYNAMIC S / R LEVELS. Also the GBP FEATURE stays at 1.2578 LEVEL. Therefore, most of the time the PRICE can be sold in the form of a STRUCTURE and BUY. Before that a RETRACEMENT can come to DYNAMIC S / R LEVELS again.
- Currently the SENTIMENT of the OVERALL MARKET is RISK OFF. Also EQUITIES is giving a slightly MIXED RISK Tone. VIX INDEXES DOWN. But they can be UP. Also COMMODITIES now shows a DOWN SIDE BIAS. Currently the MARKET has a RISK OFF SENTIMENT. So be on the lookout, maybe in the NEWYORK SESSION in the market, maybe RISK ON today is Friday.
- EURGBP PRICE can be UP to 0.8663 LEVEL before DOWN. Then it can be DOWN to 0.8352 LEVEL. Also, the MARKET SENTIMENT may change after today's NEWYORK SESSION. Be aware of how the ECONOMIC INDICATORS and MARKET SENTIMENT differ.