FOREXYARD: Forex News Blog

Link to Forex Trading Education : Forex Trading Blog by FOREXYARD » EUR GBP

Forex: EUR/GBP Finds Support at 0.8500
EUR Expecting to Rebound Versus GBP
Risk Appetite Growing; EUR Pares Losses

Posted: 12 Nov 2010 01:59 AM PST

The EUR/GBP has been receiving some support at its current price level. We can see on the chart below that the pair has touched the 0.8500 price mark and hurriedly bounced off. The EUR has been falling amidst debt concerns in the euro zone's periphery, but it appears the British pound's recent sell-off against other pairs, such as the USD and JPY, has assisted in a modicum of support for the EUR, at least against this currency.

What is also worth noting is the fact that the RSI and Stochastic (slow) indicators both reached into the over-bought region during the pair's downward descent, but have since exited this area. Their breach of the over-bought region was an indication to sell, but their hasty retreat may indicate that technical pressure has begun to shift into a bullish posture.

If the Stochastic (slow) on the chart quickly reaches into the over-sold region, where it appears to be heading, this could support the technical correction we're seeing on this pair. The RSI is less likely to provide direction unless the pair moves in a highly volatile manner. Traders should therefore pay closer attention to the Stochastic today. If it drops below the over-sold region, the pair may find further upward support. If not, we could see the downtrend of the EUR persist into the weekend's close.

EUR/GBP – Weekly Chart
EURGBP - Weekly Chart

EUR Expecting to Rebound Versus GBP

Posted: 21 Apr 2010 12:27 AM PDT

The EUR has dropped significantly versus the GBP in the last week, and it is currently trading around 0.8730. And now as evident in the data below, the 4-hour chart is giving bullish signals, indicating that the EUR/GBP pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal.

• Below is the 4-hour EUR/GBP chart by ForexYard.

• The technical indicators used are the Relative Strength Index (RSI), Slow Stochastic, and Williams Percent Range.

• Point 1: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-sold territory, indicating upward pressure.

• Point 2: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.

• Point 3: The Williams Percent Range is testing the near lower border at the -100 mark, which merely highlights some added upward pressure.

EUR/GBP 4-Hour Chart
EUR-GBP 21-4

Risk Appetite Growing; EUR Pares Losses

Posted: 06 Jul 2009 10:47 PM PDT

After yesterday morning’s short boost to the USD and JPY, as well as Crude Oil’s tumble toward $63, we now see a return of risk appetite following the US’s manufacturing data release. As of this morning the EUR and GBP have been regaining the ground lost to the Dollar and Yen. Today’s data releases will either continue this trend, or remove the risk appetite gained since yesterday.

8:30 GMT: GBP – Manufacturing Production
- Manufacturing makes up about 80% of total industrial production in the UK, making this a significant report to follow.

- After US manufacturing data yesterday showed significant growth, UK data will either support this trend, or reverse it.

- While only modest growth is forecast, a stronger reading will help risk appetite, thus boosting the GBP and EUR.

- A negative result in this report may reverse yesterday’s late-session gains and return traders to the USD and JPY.

Gold Tips:
- Gold prices have been steadily declining lately.

Technically speaking, Gold charts are showing 2 things:
- First: Bollinger Bands on the hourly and daily charts are tightening, suggesting a volatile jump is on the way

- Second: Most pressure on Gold’s price is in an upward direction at the moment.

- However, the “double-top” formation on the weekly chart suggests further downward momentum.

- Today will be an interesting day for Gold traders as its price will no doubt experience heavy volatility.