Daily Price Action
Shares

EURGBP: Will Sellers Finish What They Started in September?

Shares

Important: I use New York close charts. Click Here to Use My Preferred Broker

On November 20 we discussed a 270 pip range on the EURGBP that could dictate the future direction of the Euro cross. At the time the pair was trading in the middle of the range at 0.8865.

One thing I mentioned at the end of that post is that a break lower was likely, at least that was my best guess. The justification I gave was that the recent decline since late August looked impulsive.

Despite rallying for a brief period in late November, sellers took over just below 0.9015 resistance. In fact, the November 28 session formed a quasi bearish engulfing pattern.

With the pair moving to test range support at 0.8745, I’m actively watching for a daily close (5 pm EST) below the level. Such a break would expose the 0.8600 handle followed by 0.8470.

Alternatively, bullish price action from 0.8745 could signal another turn higher. But be careful buying at this support level. The range has been in place for several months already, so it may not hold much longer.

If EURGBP bulls regain control and eventually secure a daily close above 0.9015, it would negate the bearish scenario. It would also pave the way for a move toward 0.9133 followed by 0.9280.

The EURGBP presents an opportunity to avoid USD volatility to some degree. So if you’re apprehensive about trading the EURUSD or GBPUSD, the EURGBP may be the better option. Just be sure you have a confirmed setup before risking any capital.

Want to see how we’re trading this? Click Here to Join Justin and Save 70%

EURGBP range on daily time frame

Leave a Comment:

5 comments
Steven says

Thanks again Justin for during up date.

Reply
    Justin Bennett says

    You’re welcome, Steven.

    Reply
TripTrap says

Have marked .9015 and .8745 as important resistance / support on my EurGbp chart and will watch for a close beyond at 5pm EST.
Will see how it plays out….thanks a bunch!

Reply
Roy says

My favourite pair of 2017.

Reply
Nadzuah says

Thanks justin

Reply
Add Your Reply