EUR/GBP long-term technical analysis
EUR/GBP volatility slowly dies out as the pair trade with smaller range each month. In the previous month, the pair has high 0.8842 and low 0.8696 which translate into 146 pip range. There is no major news to trigger movement yet in EUR/GBP.
Most of the action comes from U.S dollar and incite volatility in dollar pair while lowering volatility in other instruments. Expect sideways movement to continue in June and July until major events happen.
Click here to read previous EUR/GBP long-term technical analysis
New Month
Monthly chart
EUR/GBP traded sideways on the monthly chart and stick near 0.8750 handles. The pair movement provides an opportunity for range traders. Nothing to analyze at the current time and EUR/GBP might not move much from current level as major currencies on backfoot against U.S dollar.
Weekly chart
A bounce from 0.8700 – 0.8750 area happened, and EUR/GBP almost reached the top of consolidation formed at the beginning of May around 0.8830. Short position around 0.8830 with a stop at 0.8840 might turn successful as the range expected to continue intact. If the pair turned lower then 0.8700 – 0.8750 is the downward target.
Daily chart
Similar outlook as weekly chart seen on EUR/GBP daily chart. The pair almost reached the top of consolidation and traders could prepare for the short-term short position.
Trade plan
The bias stays bearish for EUR/GBP even though the pair is in a sideways situation. On the daily chart and weekly chart, there is an opportunity for a short position at the top of consolidation around 0.8830.
A long position could be taken when the pair is hovering at 0.8700 – 0.8750.