EUR/GBP long-term technical analysis

The global market situation turns sour and full of tension as U.S President inciting trade wars through import tariff. Several months back, U.S imposed tariffs to China and U.S allies. Retaliation or counter tariff brought by opposite parties which received by another round of tariff.

EUR/GBP much or less impacted by the situation. However, the weight heavier on the UK side as Brexit reach “No-Deal” situation. Under the short-term time frame, we think Euro will have upper hand against UK Pound sterling.

Click here to read previous EUR/GBP long-term technical analysis

New Month

Monthly chart

EUR/GBP reached the top of the pink box and completed the consolidation inside the box. The pair expected to continue its sideways movement inside the box area and start moving down. Traders could start looking for a short position with close confirmation below 0.8920.

Weekly chart

The breakout above red trendline has brought EUR/GBP to the top of the pink box. Although it is bullish, EUR/GBP has not left the box yet. Currently, the pair has a projection inside the blue channel shown on the weekly chart. Traders could monitor the pair movement inside the channel and place long position when there is a bullish reaction at the bottom of the channel.

Daily chart

We might think EUR/GBP is in a short-term bullish trend and it could continue upside. However, there is at least two strong bearish momentum candlestick which leads us to question. Is the uptrend sustainable? It is too early to answer the question, traders will observe next week price movement and how the pair reacted when it reaches the bottom of the blue channel.