Get started

Eur-gbp

JoeG2H - Selling EURGBPTrade Idea: Selling EURGBP Reasoning: Selling into horizontal resistance on the daily chart Entry Level: 0.8709 Take Profit Level: 0.8576 Stop Loss: 0.8754 Risk/Reward: 2.9/1 Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Short
by Signal_Centre
EUR GBP - FUNDAMENTAL ANALYSISUK: Labor data to keep Bank of England expectations hawkish The Bank of England has made it clear that the decision on June rate hike will be underpinned by the two sets of wage and inflation data out before the next meeting. The first of these unemployment and wage numbers will be out on Tuesday, with consensus expectations not suggesting any let up in concerns yet. Expectations are for the unemployment rate in the three months to March to hold steady at 3.8%, employment change to remain at 160k from 169k and headline earnings growth to also remain steady at 5.8% from 5.9%, whilst the ex-bonus metric is seen firming up to 6.8% from 6.6%. Firmer data could bring the expectation for a June rate hike from Bank of England higher from a 69% probability for now and bring the focus also on next CPI release on May 24. EURGBP remains on the verge of a breakout on the downside after trading in a range since the start of the year.
Long
by thunderpips
EUR GBP - FUNDAMENTAL ANALYSISPound Sterling briefly dipped after the GDP data on Friday, but still found support on dips with GBP/USD around 1.2530 and GBP/EUR at 1.1475. The Pound to Dollar (GBP/USD) exchange rate strengthened to 1.2640 in an immediate response to the Bank of England policy decision on Thursday. There was, however, a notable reversal later in the session as risk appetite deteriorated and the dollar regained territory. In this environment, GBP/USD posted sharp losses to lows at 1.2500. Risk conditions will remain an important element. Carl Hammer, chief strategist at SEB commented; "We are entering a more defensive state generally." Adam Cole, chief currency strategist at RBC Capital Markets, expects choppy trading rather than sustained dollar depreciation. He added; "We're not convinced that this is a sustainable trend yet. We'll have periods when the dollar does well and the dollar does badly." Mixed GDP data, UK Lags in Global Terms The latest GDP data recorded a 0.3% decline for March compared with expectations of no change and following no change in February. The first quarter, however, recorded 0.1% growth and in line with expectations which means that the UK has again avoided a technical recession. Services declined 0.5% for March after a 0.1% retreat in February with output in consumer-facing services dipping 0.8% on the month. Production output increased 0.7%for the month with 0.2% growth in construction output. According to Darren Morgan from the ONS; “The fall in March was driven by widespread decreases across the services sector. Despite the launch of new number plates, cars sales were low by historic standards – continuing the trend seen since the start of the pandemic – with warehousing, distribution and retail also having a poor month.” He added; “These falls were partially offset by a strong month for manufacturing as well as growth in gas production and distribution and also in construction.” The ONS estimated that GDP was 0.5% below the pre-pandemic peak and the worst performance within the G10 area. Pantheon Macroeconomics economist Samuel Tombs noted that the UK is “still at the bottom of the G7 league table”. Nevertheless, he added; “at least the magnitude of the underperformance is not increasing relative to other countries in Europe, which have faced a similarly enormous energy price shock.” RSM UK economist Thomas Pugh, commented; “The 0.1% q/q rise in GDP in Q1 means the UK has probably avoided a recession altogether this year.” Nevertheless, he added; “The big picture is that the economy is still 0.5% below its pre-pandemic level and is unlikely to regain that level until the end of the year at the earliest.” According to Victoria Scholar, head of investment at interactive investor; “Stubbornly high inflation, negative real wage growth and general cost of living pressures are weighing on the consumer, and in turn the services industry which is typically a key growth engine for the UK economy.” Tom Stevenson, personal investing director at Fidelity International also pointed to underlying weakness; "With the key services side of the economy continuing to slow in the face of higher borrowing costs and rising prices, it still feels like we’re walking through treacle." He added; "With inflation still in double digits, it feels depressingly like a re-run of 1970s stagflation." KPMG economist Yael Selfin also expressed caution; "While recession is probably no longer on the cards, vulnerabilities resulting from higher borrowing costs and tighter credit are likely to dampen business and household activity this year." Ben Jones, CBI lead economist Ben Jones was slightly more positive; “The UK economy is proving more resilient than widely expected and it looks increasingly likely that the UK will avoid a recession this year. Underlying momentum appears to be firming, with our surveys showing growth expectations for the quarter ahead creeping back into positive territory for the first time in a year. ING summarised the situation; “Strip out all of the volatility though, and the economy seems to be reasonably stagnant.” BoE Debate will Continue The Bank of England increased interest rates by 25 basis points to 4.50% at the latest policy meeting which was in line with consensus forecasts. The 7-2 vote for the move was also expected as Tenreyro and Dhingra again voted against any rate hike. The bank now expects positive GDP growth in 2023 and 2024 with no quarters of negative growth. Overall, growth forecasts were revised higher by the largest extent since the bank gained independence in 1997. The bank also raised inflation forecasts with an important impact from the strong increase in food prices. The CPI inflation rate is now forecast at close to 5.0% at the end of 2023 from 4.0% previously. According to ING; While we don’t exclude one final June hike, our base case is that we have reached the peak of the BoE tightening cycle as inflation will start to rapidly decelerate this year.” ING added; “For now, however, there aren’t many convincing reasons to call for GBP underperformance against its main peers in the near term.” Commerzbank considers that expectations are liable to fluctuate; “In the end future data will be decisive for the BoE’s next rate decision though, in addition to the April inflation data the May data will also be published.” It added; “If a swift fall were to become obvious here, as the BoE expects, it is likely to refrain from further rate hikes and that would put pressure on Sterling. However, the risk that the BoE will do more has certainly increased since yesterday.” According to Credit Agricole; “The comments suggested that the BoE outlook whilst not as dire as in February has not improved significantly from the stagflationary scenario that the MPC has been predicting since May 2022.” UoB expects further GBP/USD losses; “The burst in downward momentum indicates that the downside risk is building quickly. From here, we expect GBP to drop to 1.2445; if it can break below this major support level, it could trigger a rapid decline to 1.2390.”
Long
by thunderpips
1
EUR GBP - FUNDAMENTAL ANALYSISMonetary Policy: A Hawkish Stance? The BoE's impending monetary policy decision is a critical factor underpinning Sterling's performance. The analysts' consensus is that the BoE will adopt a hawkish stance, with a 25 basis point hike in the bank rate. This move would bring the bank rate to 4.50%, in line with market expectations. "We expect the BoE to hike the Bank Rate by 25bp bringing it to 4.50%, which is fully priced by markets," says Kirstine Kundby-Nielsen, Analyst, FX Strategy at Danskebank. She adds, "In our base case of a 25bp hike, we expect the reaction in EUR/GBP to be rather muted on the release but move slightly higher during the press conference." Similarly, Valentin Marinov, Head of G10 FX Strategy at Credit Agricole, also foresees a rate hike. However, he points out that the Monetary Policy Committee (MPC) may remain divided over the need for further aggressive hikes. "We expect that the MPC will deliver a 25bp rate hike today to lift the bank rate to 4.50% but think it will remain divided on the need for further aggressive hikes," says Marinov. Rate Hike Cycle: Nearing its Peak? Another hotly debated topic among analysts is the trajectory of the BoE's rate hike cycle. While some believe that the current cycle is nearing its peak, others argue for its continuation, contingent on the data. ING Economics' FX Strategist, Francesco Pesole, suggests that the BoE might be close to hitting the peak in its rate hike cycle. He cites the primary drivers of inflation, namely food prices and core goods inflation, as temporary phenomena and expects a rapid deceleration in CPI later this year. "Today’s 25bp hike may well be the last one in this cycle," says Pesole. "The drivers of higher-than-projected inflation have primarily been food prices and some surprising stickiness in core goods inflation: neither of those trends look likely to be long-lasting," he adds. On the other hand, Danskebank's Kundby-Nielsen anticipates that the BoE will communicate a 'pause' in its hiking cycle to fully assess the impact of previous rate increases. However, she highlights that this decision will be heavily data-dependent. "In its statement we expect the BoE to prime markets for a pause in the hiking cycle as the central bank wants to fully evaluate the effect from previous Bank Rate increases before deciding on next steps," says Kundby-Nielsen. "However, as always, all future decisions will be data-dependent," she adds. Outlook for the Pound Sterling: Where Next? The impending BoE decision is also expected to have significant ramifications for the sterling. While the overall outlook appears cautiously optimistic, the currency's fate is contingent on multiple factors, including the BoE's future monetary policy stance and the pace of economic recovery. MUFG's Senior Currency Analyst, Lee Hardman, observes the sterling trading close to its year-to-date highs ahead of the BoE meeting. The strengthening of the sterling, particularly against the euro, reflects the fading investor pessimism about the UK's economic outlook. Hardman also notes the resilience of the UK economy and the persistent inflation and wage growth, which puts pressure on the BoE to maintain its rate hike cycle. "The pound is continuing to trade close to year-to-date highs ahead of today’s BoE policy meeting," says Hardman. "The resilience of the UK economy at the start of this year alongside still uncomfortably strong inflation and wage growth keeps pressure on the BoE to keep raising rates," he adds. Francesco Pesole of ING Economics also discusses the sterling's recent strength, attributing it in part to aggressive market expectations of BoE tightening. However, he believes that these hawkish expectations may be excessive and could be scaled back. "We acknowledge that part of GBP’s recent strength has been due to the market’s aggressive expectations about BoE tightening, and therefore recognise there are downside risks as those (excessive, in our view) hawkish expectations are scaled back," says Pesole. BoE's Forward Guidance and Sterling's Reaction Much of the sterling's reaction post-BoE decision would depend on the central bank's forward guidance. Tullia Bucco, Economist at UniCredit Bank, anticipates that the BoE will likely maintain a data-dependent approach without offering explicit rate guidance, leaving the sterling's performance hanging in the balance. "A 25bp rate hike to 4.50% is expected, and sterling’s reaction will therefore likely mostly depend on the message that BoE Governor Bailey conveys in his press conference," says Bucco. "The risk is that no rate guidance will be delivered today, with the BoE stressing that further rate decisions remain data dependent, which might not offer sterling much support either," she adds. Nikesh Sawjani, Economist at Lloyds Bank, highlights that the 25bps rise would make it the twelfth consecutive hike in the current cycle which began in December 2021. The cumulative tightening since then would total 440bp. Sawjani draws attention to the fact that current CPI inflation is much stronger than the BoE had anticipated, with March's headline CPI at a substantial 10.1%, notably above the BoE staff forecast of 9.2%. Sawjani also anticipates an upward revision of GDP forecasts, backed by possible GDP growth in Q1 and survey evidence of improved economic confidence and activity at the start of Q2. Additionally, he expects that fiscal measures from the March Budget and lower-than-assumed energy prices will likely support real incomes, further bolstering GDP. "New BoE economic forecasts will provide an update on the medium-term growth and inflation outlook," says Sawjani. "Overall, it seems likely that GDP forecasts will be revised higher. All else being equal, that would lead to a higher medium-term inflation profile although not sufficiently to prevent an undershoot of the 2% target in 2024 and 2025," he adds.
Long
by thunderpips
EURGBP - Trend-Following Buy Setup! ↗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. EURGBP is still overall bullish trading inside the rising broadening wedge in brown. Moreover, the zone 0.87 is a support zone . 🏹 So the highlighted purple circle is a strong area to look for buy setups as it is the intersection of the green support and lower brown trendline. As per my trading style: As EURGBP is sitting around the purple circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Long
by TheSignalyst
4
EURGBP Near a buy break-out signalThe EURGBP pair is testing the top (Lower Highs trend-line) of a short-term Channel Down inside a 1 year Channel Up pattern. The previous two such patterns gave a buy signal when a 1D candle close above them. If that happens, we will buy and target Resistance 1 (0.89800). Our trading plan involves selling at the top of the Channel Up (Higher Highs trend-line) if a 1D candle closes below it and target 0.88000 (the 1D MA200) and buy if a 1D candle closes above it (target Resistance 2 at 0.92800). ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
Long
by TradingShot
1
EURGBP Outlook 21 April 2023The EURGBP trades within an ascending triangle toward the 0.8824 resistance level. This upward move follows the rejection of the 50% Fibonacci retracement level from the longer-term upward move. Look for a breakout to the upside with the price needing to trade beyond the 0.8830 price level which coincides with the 50% Fibonacci retracement level from the recent downward move. A breakout to the upside could be driven by further weakness in the GBPUSD, which could see the EURGBP retest the key resistance level of 0.8860.
Long
by JinDao_Tai
EURGBP: Preparing a strong rebound.The EURGBP pair is currently on the 1D MA50, trading inside a long term Channel Up for more than 1 year. The 1D technicals are neutral (RSi = 51.179, MACD = 0.000, ADX = 27.770) meaning that this level is gradually turning into a buy opportunity inside the Channel Up. Every rally made at least a 5.00% rise, so we are targeting the top of the Channel (TP = 0.91250). Prior idea: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
Long
by InvestingScope
4
EurGbp SmC Setupfollo the levels EUR/GBP bears are back in the race during early Monday as the quote drops to 0.8845 amid the initial hours of the European session, after being absent in the last four days. In doing so, the cross-currency pair retreats from a three-week high while snapping a four-day winning streak. That said, a downward-sloping resistance line from early February, around 0.8860 by the press time, triggers the latest pullback in the EUR/GBP prices. However, the pair’s downside appears limited as the 50-DMA level of 0.8823 puts a short-term floor under the price. Following that, a fortnight-long ascending support line near 0.8790 can check the EUR/GBP bears before directing them to the key trend line support stretched from December 19, 2022, around 0.8730 at the latest.
Short
by KaniSivan
EURGBP | Bullish Signal!Based on the current market analysis, it appears that EURGBP is showing a potential bullish signal. The Average True Range (ATR) is currently positive, indicating that the market is experiencing volatility, which can provide opportunities for traders to profit. In addition, the Moving Average (MA) and other Technical Analysis (TA) tools suggest that the pair has a potential upward momentum. These technical indicators can be used as supporting evidence to confirm the bullish sentiment for EURGBP. Overall, the positive ATR, along with the bullish signals from MA and TA, indicate that there may be an opportunity to profit from a long position in EURGBP. However, it is important to always be aware of the risks involved in trading and to use appropriate risk management strategies.
Long
by percifying