EUR/GBP long-term technical analysis
November is a bullish month for EUR/GBP as the pair attempt to secure level above 0.9000. Unfortunately, the bull could not secure a breakout above the level and released most of its gain by the end of the month. There are several major events which influence the market between November – December. It was U.S tax-bill, OPEC production cut extension and UK Brexit talk. We will talk mostly about Brexit as the event has more weight to EUR/GBP pair.
Brexit talk is underway in the meantime. Some pro-Brexit think the divorce bill of £50b is too high and use by Euro to punish the UK. Most of the voters think UK government should not pay the bill. The divorce bill will determine UK position in the “single market.”
December will become a roller-coaster month while Europe and UK will fight “tooth & nails” on how Brexit should be done.
Click here to read previous EUR/GBP long-term technical analysis
New Month
Monthly chart
EUR/GBP is in a shaky situation, and the pair closed outside of its bullish trendline. It is almost an identical month between October and November. The pair initially gained nearly 300 pips, but the gain vanished by the end of the month. By the end of November, EUR/GBP closed right at 0.8800 which show indecision.
The bull wants the pair move back above the trendline, while the bear wants EUR/GBP fall below 0.8750. Overall, the long-term trend is bullish, but Brexit event is in progress which could turn the pair into wild movement.
Weekly chart
We could see the floor is moving up on EUR/GBP weekly chart. There is no weakness indication yet, and the pair could continue moving up. However, currently, it stuck inside the bisque color box. Traders will wait until the consolidation breakout of the box range.
Daily chart
The plot of EUR/GBP movement on the daily chart is similar to its weekly chart. There is no momentum movement outside of the bisque box. Traders could use this moment to trade the range until it breakout.
Trade plan
Traders suggested trading the bisque color box range until breakout happens. Long position around 0.8750 – 0.8800 and short position around 0.8980 – 0.9020 might be the best scenario to consider.