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EURGBP trade ideas

Sell EUR/GBP Channel BreakoutThe EUR/GBP pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Bearish Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours. Key Points: Sell Entry: Consider entering a short position around the current price of 0.8392, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum. Target Levels: 1st Support – 0.8340 2nd Support – 0.8305 Stop-Loss: To manage risk, place a stop-loss order above 0.8422. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards. Your likes and comments are incredibly motivating and will encourage me to share more analysis with you. Best Regards, KABHI FOREX TRADING Thank you.
Short
by KABHI_FOREX_TRADING
6
How Exchange Rates Affect International BusinessesHow Exchange Rates Affect International Businesses Exchange rates directly affect the cost of goods and services in international trade and can have a substantial impact on a company’s revenue and profit margins. Foreign exchange risk refers to the potential financial impact caused by fluctuations in the value of currencies. Companies with cross-border operations are particularly sensitive to it. This FXOpen article looks at how changes in exchange rates influence different companies in general, why they can do it, and how they affect the operations of international business. Types of Exchange Rate Influence In essence, foreign currency exposure is driven by the uncertainty associated with the future exchange rates of two currencies and has a material impact on a company’s financial position. To gain a deeper understanding of the impact of this risk on businesses, it’s crucial to break it down into its primary types. Transaction Influence Transaction influence is a risk in international business that refers to the potential gains or losses arising from the conversion of one currency into another for immediate transactions. It arises from fluctuations in exchange rates between the time a transaction is initiated and the time it is completed. Imagine a British company invoices a European customer in euros but settles with the customer three months later. A shift in the EUR/GBP exchange rate during this period may noticeably change the final amount of funds received. Translation Influence Another aspect to think about is the relationship between currency risk and businesses that have subsidiaries in other countries. Translation influence, also known as accounting risk, primarily affects multinational corporations with affiliates operating in different currencies. It arises when these companies consolidate their financial statements by translating foreign currency assets and liabilities into the reporting currency. Fluctuations in exchange rates can lead to changes in reported earnings, which creates challenges for financial analysis and decision-making. Economic Influence Considering a more global risk, it’s vital to pay attention to the economy as a whole. The economic impact is long-term and can change a company’s overall competitiveness and value. It affects a company’s international investments and may influence its strategic decisions. For instance, the economic landscape can affect the relative prices of a company’s products or services. Thus, manufacturing in one country and selling in another may become unprofitable, and the company will have to find new markets. Factors Contributing to Exchange Rate Changes To better understand the foreign exchange risk in international business, let’s start with an examination of the factors that contribute to it. Three main areas to keep in mind are market movements, economic conditions, and political stability. Exchange Rate Volatility Exchange rate volatility is a foreign exchange market risk. You can track currency changes by looking at the movement of currency pair quotes on international exchanges and special platforms like TickTrader. Market players, namely large companies, banks, institutional investors, and traders, influence the quotes by their actions. When exchange rates are highly volatile, companies face greater uncertainty about the future. This may hinder forecasting and managing cash flows. Macroeconomic Factors Macroeconomic factors such as interest rates, inflation, and economic growth are something that multinational companies need to keep an eye on. Changes in these factors lead to shifts in the value of currencies, directly affecting international businesses engaged in trade and investment. To keep abreast of global and local economic news, you can gather information from a variety of reputable sources and regularly check the economic calendar. Political Instability Political instability in a country can disrupt the stability of its currency. Sudden changes in government, politics, or geopolitical events can lead to fluctuations in the value of currencies, creating a corporate risk for companies operating in these regions. To keep up with developments, traders may read the news regularly and use the Political Stability Index. It is one of the indices developed by the World Bank, and it measures perceptions of the likelihood of the destabilisation of the incumbent government. Impact of Exchange Rate on International Businesses Now that we’ve explored the nature and contributing factors of the exchange rate effect, let’s examine how it can affect international businesses across various dimensions. Financial Implications - Revenue and profit fluctuations. Foreign exchange rates can affect a company’s revenue and profits. Fluctuations lead to unpredictable shifts in the value of international sales and could enhance or worsen a company’s financial performance. - Cash flow challenges. Cash flow management becomes more complex. Currency fluctuations can impede predicting the timing and amount of incoming and outgoing payments. This often results in cash deficits or surpluses, making it harder to meet financial obligations. Operational Disruptions - Pricing and cost issues. Another business risk of a company is that currency fluctuations may disrupt pricing strategies. It may be necessary to adjust prices frequently, which will negatively impact competitiveness and customer relations. In addition, changes in the cost of imported materials may increase the cost of production. - Supply chain disruptions. International companies typically rely on complex global supply chains. Disruptions will affect the cost of imports and make it difficult to manage contracts with international suppliers, potentially leading to delays. Strategic Considerations - Expansion decisions. Exchange rates can influence a company’s decisions to enter a new market and expand operations. Perceived influences related to certain currencies or regions can deter or encourage expansion plans. - Mergers and acquisitions. Companies should assess how currency fluctuations change the value of target companies. This is important since the results of the assessment will show the potential success and profitability of a merger or an acquisition. Final Thoughts Understanding the types of exchange rate effects, the factors contributing to them, and the potential impact on financial and operational performance is critical to effective management. Adopting sound strategies to mitigate the effects of currency fluctuations will enable companies to thrive in the global market. If you are interested in participating in global markets, you can open an FXOpen account and start trading. We offer forex pair and stock, index, ETF, crypto*, and commodity CFDs, so you can easily diversify your portfolio and minimise the business risk of your company related to exchange rates. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.
Education
by FXOpen
2
EURGBP Wave Analysis 12 November 2024 - EURGBP reversed from long-term support level 0.8265 - Likely to rise to resistance level 0.8365 EURGBP currency pair previously reversed up from the long-term support level 0.8265 (former powerful support from the start of 2022) coinciding with the lower weekly Bollinger Band. The upward reversal from the support level 0.8265 stopped the previous impulse wave 3. Given the strength of the nearby support level 0.8265 and the oversold weekly Stochastic, EURGBP currency pair can be expected to rise to the next resistance level 0.8365.
Long
by FxProGlobal
1
Join My Bullish EUR/GBP Journey!Hey Traders! Today, I'm excited to share my bullish trade idea on the EUR/GBP currency pair. As we navigate through the current market dynamics, I believe there are several key fundamentals supporting this upward bias. Current Market Fundamentals - Economic Indicators: The upcoming release of the Confederation of British Industry (CBI) retail sales data is anticipated to show positive trends, which could strengthen the GBP. A robust consumer spending report can create a favorable environment for the Euro to gain against the Pound. - Market Sentiment: Recent bullish candlestick patterns on the H4 chart suggest a potential reversal in the EUR/GBP pair. The price is currently hovering near the middle Bollinger Band, indicating a possible breakout. - Technical Setup: The pair is trading between the 23.6% and 38.2% Fibonacci retracement levels, suggesting consolidation with potential for upward movement. This technical setup aligns with my bullish sentiment. Utilizing Probabilities for Positioning In my trading strategy, I emphasize the importance of probabilities to make informed decisions. Here’s why: - Statistical Edge: By analyzing historical price movements and current market conditions, I can identify patterns that have a higher likelihood of repeating. This statistical approach helps me gauge potential outcomes more effectively. - Risk Management: Using probabilities allows me to set realistic targets and stop-loss levels, ensuring that I manage risk while maximizing potential gains. For instance, if historical data shows a 70% success rate for bullish movements after similar setups, I can confidently position myself for long trades. - Adaptability: Markets are dynamic; therefore, employing a probabilistic mindset enables me to adapt my strategy based on real-time data and changing conditions. This flexibility is crucial in maintaining an edge in trading. Conclusion With a bullish bias on EUR/GBP backed by solid fundamentals and a robust technical setup, I am ready to position myself for long trades using probabilities as my guiding principle. Let’s keep an eye on the upcoming economic data releases and market movements that could further validate this trade idea. Feel free to share your thoughts or any questions you may have! Happy trading! 1M: 2W: 2H: P.S. If you have any questions about how I trade probabilities with the overall market direction, feel free to reach out.
Long
by Jasminex1x2
1
#EURGBP 4HEURGBP 4-Hour Analysis The EURGBP pair is currently trading near the support line of an expanding pattern on the 4-hour chart, indicating potential buying interest at this level. This expanding pattern suggests volatility, with the support line serving as a key area for potential upward reversals, creating an opportunity for a buy position. Technical Outlook: - Pattern: Expanding Pattern Support Line - Forecast: Bullish (Buy Opportunity) - Entry Strategy: Buy near the expanding pattern’s support line Traders may consider a buy entry around the support line, aiming for higher resistance levels within the expanding pattern. Additional confirmation from indicators like RSI indicating oversold conditions or MACD showing a bullish crossover could strengthen this setup, supporting a bullish forecast for EURGBP.
Long
by PIPSFIGHTER
Elliott Wave View in EURGBP Calling for More DownsideShort Term Elliott Wave View in EURGBP suggests that decline to 0.8295 on October 18, 2024 ended wave (1). Wave (2) corrective bounce is proposed complete at 0.8447 as the 1 hour chart below shows. Internal subdivision of wave (2) unfolded as a Flat Elliott Wave structure. Up from 10.18.2024 low, wave A ended at 0.8352 and wave B pullback ended at 0.8295. Wave C higher ended at 0.8447 which completed wave (2) in higher degree. Pair has turned lower in wave (3) with internal structure of an impulse. Down from wave (2), wave (i) ended at 0.8366 and wave (ii) ended at 0.8418. Wave (iii) has resumed lower as an impulse. Down from wave (ii), wave i ended at 0.8388 and wave ii ended at 0.8412. Wave iii lower ended at 0.8414 and wave iv rally ended at 0.834. Last leg wave v lower ended at 0.8305 which completed wave (iii) in higher degree. Wave (iv) corrective rally ended at 0.833. Expect pair to extend lower to end wave v of ((i)). Then it should rally in wave ((ii)) to correct cycle from 11.1.2024 high before it resumes lower. Near term, as far as pivot at 0.8447 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.
by Elliottwave-Forecast
BUY EURGBP for bearish trend reversal STOP LOSS : 0.8295BUY EURGBP for bearish trend reversal STOP LOSS : 0.8295 Regular Bullish Divergence In case of Regular Bullish Divergence: * The Indicator shows Higher Lows * Actual Market Price shows Lower Lows We can see a strong divergence on the MACD already and There is a strong trend reversal on the daily time frame chart..... The daily time frame is showing strength of trend reversal from this strong level of Support so we are looking for the trend reversal and correction push from here ..... TAKE PROFIT : take profit will be when the trend comes to an end, feel from to send me a direct DM if you have any question about take profit or anything Remember to risk only what you are comfortable with…….trading with the trend, patient and good risk management is the key to success here
Long
by BALE_FX