The EURGBP is approaching an interesting point, technically and fundamentally.
On the technical side, price may soon break out of consolidation to the upside or the downside,
either way we are likely to see a big trend as a result.
Fundamentally, we are approaching the Brexit date for when the UK finally leaves the EU on October 31st 2019.
With a lot of news and debate about this recently in politics, we may even see a delay in leaving the EU, which may
have a negative or positive effect on price.
Regardless of what is happening in the news, we always know that the charts tell us a better story
of what is happening in the markets.
The EURGBP saw a nice rally from July 2015 to October 2016, lasting 15 months, which was followed
by consolidation. Big trends are usually followed by periods of consolidation so it is of no surprise that this
rally of 33% has seen price remain in consolidation for 3 years.
The Euro found some strength in August 2017 and August 2019, seeing price spike out of consolidation
briefly only to return back within the consolidation zone.
Price is finding weakness and is currently trading below the daily 200 simple moving average
and we may see more weakness to come. If price moves lower then we want to wait and see if it
can break below the consolidation support level at 0.8297. If price does break and close below that level
then we may see a strong trend to the downside develop.
Following a break of 0.8297, we have two round numbers that price may move towards which
are 0.8000 then 0.7000. Followed by that we have the July 2015 low at 0.6930.
Remember that nothing is guaranteed and price may just remain in consolidation for a while longer.
We just need to apply patience and only act when opportunities present themselves.
As always, keep it simple, keep it Sublime.
On the technical side, price may soon break out of consolidation to the upside or the downside,
either way we are likely to see a big trend as a result.
Fundamentally, we are approaching the Brexit date for when the UK finally leaves the EU on October 31st 2019.
With a lot of news and debate about this recently in politics, we may even see a delay in leaving the EU, which may
have a negative or positive effect on price.
Regardless of what is happening in the news, we always know that the charts tell us a better story
of what is happening in the markets.
The EURGBP saw a nice rally from July 2015 to October 2016, lasting 15 months, which was followed
by consolidation. Big trends are usually followed by periods of consolidation so it is of no surprise that this
rally of 33% has seen price remain in consolidation for 3 years.
The Euro found some strength in August 2017 and August 2019, seeing price spike out of consolidation
briefly only to return back within the consolidation zone.
Price is finding weakness and is currently trading below the daily 200 simple moving average
and we may see more weakness to come. If price moves lower then we want to wait and see if it
can break below the consolidation support level at 0.8297. If price does break and close below that level
then we may see a strong trend to the downside develop.
Following a break of 0.8297, we have two round numbers that price may move towards which
are 0.8000 then 0.7000. Followed by that we have the July 2015 low at 0.6930.
Remember that nothing is guaranteed and price may just remain in consolidation for a while longer.
We just need to apply patience and only act when opportunities present themselves.
As always, keep it simple, keep it Sublime.
