Select Language

EUR/GBP Price Forecast: Bounces off multi-year lows, risk of trend reversal

Breaking news

EUR/GBP Price Forecast: Bounces off multi-year lows, risk of trend reversal

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.01 00:02
EUR/GBP Price Forecast: Bounces off multi-year lows, risk of trend reversal

update 2024.11.01 00:02

  • EUR/GBP bounces off key lows and rallies strongly. 
  • Too soon to say whether the pair is reversing trend or correcting, however, upside is strong so far. 

EUR/GBP has bounced off key support (gray dashed line) at multi-year lows and risen over a percentage point to trade above 0.8400 on Thursday. 

EUR/GBP 4-hour Chart 

The pair has risen very steeply over the last two days and this could be a sign the short-term trend is reversing and turning higher. If so the bias will be to the upside given the technical analysis principle that "the trend is your friend". It is too early to be sure this is the case however. 

It is also possible to characterize EUR/GBP as merely correcting back and forming a common three-wave abc correction in the process. This would imply price will roll over after wave c ic completed and possibly even fall back down to the 0.8300 lows. 

The speed and strength of the rally over the last 48 hours, however, suggests EUR/GBP may not just be forming an abc correction, but that it could be completely reversing trend and turning bullish. Ultimately, evidence is required to be confident of such a reversal.

The Relative Strength Index (RSI) momentum indicator entered the overbought zone (above 70) this period, however, we will not know whether it remains there until the current candle closes. At the moment that looks likely. 

If RSI closes above 70 then it will be a sign for long-holders not to add to their positions, since there is a material risk of the price pulling back.

 


Date

Created

 : 2024.11.01

Update

Last updated

 : 2024.11.01

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

ECB Call Update: Lowering the central-case terminal rate to 1.50% - Deutsche Bank

Central-case terminal rate forecast was lowered from 2.25% to 1.50%, Deutsche Bank's team of economists note.
New
update2024.11.07 19:08

Eurozone Retail Sales increase by 2.9% YoY in September vs. 1.3% expected

Eurozone's annual Retail Sales increased by 2.9% in September after rising by a revised 2.4% in August, the official data released by Eurostat showed on Thursday.
New
update2024.11.07 19:05

EUR/GBP recovers intraday losses ahead of BoE policy decision

The EUR/GBP reverses intraday losses and bounces back to near 0.8300 in the European trading session on Thursday.
New
update2024.11.07 19:04

AUD/USD: Chance to decline to 0.6500 - UOB Group

Potential for the Australian Dollar (AUD) to decline to 0.6500; the likelihood of a sustained break below this level is not high, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.
New
update2024.11.07 19:00

USD/SGD: To consolidate on the day - OCBC

USD/SGD rose, tracking the rise in broad USD, UST yields as Trump won elections.
New
update2024.11.07 18:55

EUR/USD rises ahead of Fed meeting, Trump 2.O keeps downside bias intact

EUR/USD rebounds to near 1.0770 in European trading hours on Thursday.
New
update2024.11.07 18:51

Gold steadies after three percent decline on Trump victory

Gold (XAU/USD) steadies in the $2,660s on Thursday after falling three percent on the previous day when now President-elect Donald Trump had secured a victory in the US presidential election.
New
update2024.11.07 18:50

USD: Back to fundamentals for the US Dollar - ING

Betting markets currently give the Republicans a 93% chance of winning the House and therefore a clean sweep.
New
update2024.11.07 18:47

Mexican Peso rebounds strongly after hitting over-two-year low

The Mexican Peso (MXN) maneuvers a U-turn that an F1 driver would be proud of during the volatility accompanying the US presidential election.
New
update2024.11.07 18:37

Silver price today: Silver broadly unchanged, according to FXStreet data

Silver prices (XAG/USD) broadly unchanged on Thursday, according to FXStreet data.
New
update2024.11.07 18:30

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel