⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

EUR/GBP Stabilizing Before the Next Bearish Assault?

EUR/GBP was on a bullish trend from August until the middle of last month, gaining around 250 pips, with moving averages acting as support, providing opportunities to buy this pair when the price retreated lower. But, the trend shifted late last month and sellers have been in control, with MAs acting as resistance at the topside now, where we have been selling this pair.The downtrend has stalled for now in EUR/GBP

We decided to open a sell forex signal earlier this week after this pair fell around 200 pips, with the pace of the downtrend being really strong. The 50 SMA (yellow) has been the ultimate resistance indicator during the decline, but the price action has stabilized in the last week or so and EUR/GBP has been consolidating below 0.86, so our signal has been live for several sessions.

The Eurozone economy has deteriorated rapidly this year, and the ECB has become more dovish, but a similar picture is emerging in the United Kingdom, with economic data indicating deepening economic weakness and the Bank of England returning to the sidelines as well. We saw some improvement in the PMI services and manufacturing numbers for November, but both economies remain close to recession, so both these currencies have been among the weakest ones in recent weeks.

🏆 10 Best Forex Brokers

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewSFSA, FSCA, CySec*USD 5Visit Broker >>
5Read ReviewIFSC, FCA, CySEC, ASIC, CMAUSD 5Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewIFSCUSD 10Visit Broker >>
8Read ReviewNot Regulated0.001 BTCVisit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewSVGFSAUSD 5Visit Broker >>

Yesterday we had a round of economic data from the Eurozone which leaned more on the negative side, so we were hoping that the Euro would resume the decline and this pair would resume the downtrend. Germany’s industrial production was reported to have decreased by 0.4% in October, rather than increasing by 0.2% as expected. Economists predict that weakening foreign demand, and deteriorating economic conditions will put more pressure on German output in the fourth quarter.

The Q3 GDP remained unchanged at -0.1% in the final revision, while employment was revised lower to 0.2% for the same quarter. Today there is no major data from these two economies scheduled, so comments from ECB and BOE members will be movers for the Euro and the GBP.

EUR/GBP Live Chart 

EUR/GBP
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
🔒 OPEN A TRADING ACCOUNT