Traders officially love to sell EURGBP against 0.8933 level
Euro/British Pound (EURGBP) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
EURGBP finished the week -0.54% lower at 0.8894 after losing 24 pips (-0.27%) today. Today's closing price of 0.8894 marks the lowest close since August 1st. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (EURGBP as at Sep 14, 2018):
Friday's trading range was 43 pips (0.48%), that's below last trading month's daily average range of 56 pips. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 0.8882 and 0.8937 which it has been in now for the last three days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Prices are trading close to a key support level at 0.8876. Unable to break through the key technical resistance level at 0.8925, the pair closed below it after spiking as high as 0.8933 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. The forex pair was sold again around 0.8933 after having seen highs at 0.8930, 0.8937 and 0.8938 in the last three trading sessions. Obviously there is something going on at that level.
Although the market is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Selling could accelerate should prices move below the close-by swing low at 0.8876 where further sell stops might get activated. Trading close to July's low at 0.8800 we could see further downside momentum if potential sell stops at the level get triggered.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are EURUSD losing -0.56% and AUDUSD closing -0.51% lower. On the flipside the best performers have been USDCAD closing 0.28% higher and USDCHF gaining 0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDTRY surging 1.46% and USDZAR closing 1.1% higher. The worst performers of the day have been TRYJPY tanking -1.2% and ZARJPY closing -1.06% lower. Read more