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EUR/GBP Technical Analysis - EUR/GBP Trading: 2022-02-08
EUR/GBP Technical Analysis Summary
Above 0,848
Buy Stop
Below 0,828
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
EUR/GBP Chart Analysis
EUR/GBP Technical Analysis
On the daily timeframe, EURGBP: D1 has exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if EURGBP rises above its most recent high of 0.848. This level can be used as an entry point. Initial risk cap possible below the Parabolic signal and the last down fractal: 0.828. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (0.828) without activating the order (0.848), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - EUR/GBP
ECB President Christine Lagarde said that high inflation increases the risks for the European economy. Investors are counting on the tightening of the ECB's monetary policy. Will the EURGBP quotes continue to rise?
In January 2022, inflation in the Eurozone was the highest since 1997 and amounted to 5.1% y/y according to preliminary estimates. This is well above the ECB target of 2%. Investors do not rule out an increase in the rate of the European Central Bank in the 2nd half of this year. Recall that it has been 0% since March 2016. This week, on Friday, February 11, important data on inflation in Germany for January in the 2nd reading will be released. According to forecasts, it will be the same as in the 1st reading and will amount to 4.9% y/y. The dynamics of the EURGBP currency pair may be affected by British economic data, which will also be published on Friday: GDP for the 4th quarter and trade balance for December. Their forecasts so far look negative for the British pound. Recall that the Bank of England (BoE) has already raised the rate twice: in December last year (up to 0.25% from 0.1%) and in February this year (up to 0.5% from 0.25%). Market participants believe that he will now pause in tightening monetary policy. In December 2021, inflation in Britain was 5.4% y/y (more than in the EU).
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