Jump to content

British Pound Technical Analysis - GBP/USD, EUR/GBP

Recommended Posts


  • GBP/USD bounced back from attempting to make a new low for the year.
  • EUR/GBP ran out steam on the move up as momentum is now mixed.
  • Will Sterling continue to be undermined and make fresh lows?

Sterling should be treated like an emerging markets currency: analysts



GBP/USD moved aggressively lower last week, breaking below previous lows of 1.3569 and 1.3544. These levels may offer pivot point resistance.

The move also went below the lower band of the 21-day simple moving average (SMA) based Bollinger Band. A close back inside the lower band could suggest that bearishness is pausing.

The low of 1.3425 last week did not breach the low for the year at 1.3412. It might provide support if tested again.

In making that low, the price has remained below all short, medium and long term SMAs. A bearish triple moving average (TMA) formation requires the price to be below the short term SMA, the latter to be below the medium term SMA and the medium term SMA to be below the long term SMA. All SMAs also need to have a negative gradient.

GBP/USD is below the 10-day SMA, which is below the 55-day SMA, which is below the 100-day SMA. All SMAs have a negative gradient. This might suggest bearish momentum could still evolve. A move back above the 10-day SMA would negate the TMA formation.

Further potential resistance may be at the pivot point at 1.3710 and the previous highs of 1.3835, 1.3913 and 1.3982.


Chart created in TradingView



EUR/GBP appreciated sharply last week and broke above a previous high at 0.85184 that could now be a pivot point support level. Near there is the 55-day SMA that might provide support, currently at 0.85265.

Below that, there is possible support at the previous lows of 0.84630 and 0.84029.

The move up failed to hold above the 200-day SMA, and it may continue to offer resistance. It is currently at 0.85830. Above that, there are a series of previous highs that are potential resistance levels at 0.86583, 0.86697 and 0.86716.

EUR/GBP currently sits above the 10-day and 55-day SMAs but below the 200-day SMA. This might indicate that short and medium term momentum could be bullish but that longer term momentum is not.


Chart created in TradingView

Written by Daniel McCarthy, Strategist for DailyFX.com. 8th November 2021

Link to comment

British Pound (GBP) Outlook Strained as Article 16 Fears Flare Up


EU/UK relations continue to sour.
Sterling supported for now but article 16 fears remain.
Retail traders shun EUR/GBP.



What is your view on EUR/GBP– bullish or bearish?


All the best - MongiIG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 23/09/23 15:50
  • Posts

    • In my opinion, higher lev is for scalpers only! For day or swing traders, either spot or lower lev is always recommended!
    • Just now, according to Glassnode data, the number of addresses holding more than 100 BTC has reached a four-month low, currently standing at 15,955.
    • Bitcoin and other major crypto experienced a dip in value on Thursday, erasing gains made earlier in the week. The decline came after the Federal Reserve signaled that interest rates would remain high for an extended period, with Bitcoin retreating 2.3% to $26.5K. Despite the bearish pressure,  the founder and CEO of Bitcoin joint mining company Xive,  Didar stated that the stagnant rate increase is positive for Bitcoin. He suggested that this could reduce the attractiveness of mainstream financial assets to institutional investors in the long term, potentially driving a new rally in Bitcoin's price. Major altcoins and exchange tokens also struggled on Thursday, with ETH changing hands at $1,585, down about 2.6% from Wednesday. Other altcoins such as BNB and BGB also experienced losses. Despite these challenges, some analysts believe that Bitcoin is likely to remain within its recent range between $25,000 and $30,000. Riyad from digital asset data platform Kaiko, noted that the market needs a catalyst to mount any serious rally.  What are your thoughts? 
  • Create New...