Forex EUR-GBP Technical Analysis 04-Feb-2021 Forecast Strategy

This is the moment I've been waiting for - to see the behavior of the EUR-GBP movement if it will continue downtrend or making a slight correction before it's continue or reverse to uptrend instead. Let's see the perspective on each of the time frame. On the monthly time frame MACD starting to converge downward but at the same time it is also standing on the major support level - with contradictory technical indicators signal like this. What will happen ? Will it break or reverse which one has the upper hand.

Weekly Time frame show a clear indication the EUR-GBP is going down since MACD and Stochastic moving in parallel in the same direction. Strong bearish signal and it also broke the major support level.

On the daily and 4H time frames MACD and Stochastic already wearing out signalling the end of bearish signal on the level which may indicate reversal upside.

Having all the contradictory signals will it continue downward or reverse upward. This is the key knowledge I am studying here.

 

EUR-GBP Technical Analysis and MACD technical indicator

After quite sometimes studying the patterns of market movement on the EUR-GBP pair - there is quite convincing evidence the MACD is one of the most important technical indicators to predict the behavior of the market movement. It may fails at times but the consistency of the forecast is quite high. It is no wonder many conventional traders probably the big traders still relying on the basic MACD technical indicator to predict the forex market movement.

However to use the MACD effectively one must study and understand the multiple time frames perspective especially from the 4H up to the Monthly. The MACD is showing the big picture where the market support and resistance will fluctuate. 

On the other hands the MACD is not effective for scalping trades because of its delayed signal - it always stand behind the real time market fluctuations. Let's take a look on the historical market data that we've tracked since December last year.

06-Dec-2020 Technical analysis MACD time frame still going up and the daily MACD also going up the market fluctuates within the Top of the Bollinger bands of the monthly time frame.

07-Dec-2020 MACD on 4H and Daily still going up

12-December-2020 MACD on 4H and Daily still moving up

 

17-December-2020 4H MACD Down Daily Up

 

18-December-2020 4H MACD Up and Daily Up

 

28-December-2020 4H MACD Up and Daily Down

 

EUR-GBP Technical Analysis (Revisited) 11-Dec-2020

The EUR-GBP went extremely overbought last Friday 11-Dec-2020 due to the heavy falls in the GBP-USD which went oversold. The movement of the EUR-GBP was closely related to all the Euro and Pound pairs i.e. EUR-USD, EUR-JPY, EUR-CAD etc vs GBP-USD, GBP-JPY, GBP-CAD etc. 

However by the end of the trading day it eventually retrace back at least at the position where it should be. Next monday 14-Dec-2020 it may goes down for further corrections before deciding either to move up or down depending on which position the pair will rest. We will see...

eur gbp eur gbp analysis today eur gbp forecast eur gbp strategy eur gbp analysis eur gbp live eur gbp today eurgbp session eur gbp sentiment eurgbp sell or buy eurgbp correlation eur gbp trading strategy eurgbp eurgbp analysis today eur gbp technical analysis today eur gbp spot rate eur vs gbp eur gbp forex forecast forex trading for beginners forex market analysis forex analysis today forex trading forex wave analysis forex trding strategies forex for beginners forex market analysis for next week forex trading live forex scalping strategy

EUR-GBP Technical Analysis 06-Dec-2020

This is some technical analysis insight for the Euro Pound pair - one of the interesting one to trade due to the correlation. On the monthly time frame it hold on to the support quite strongly but in forex anything is possible to break pass through it. But for the time being it is bullish or ranging up. One the weekly time frame is bearish and going down to the middle band of the Bollinger indicator is the most ideal target. Daily time frame is bullish otherwise on the 4H is bearish. So we have the following combinations.

It's the struggle between all Euro related pairs against GBP related pairs

EUR-USD, EUR-JPY, EUR-AUD, EUR-CAD, EUR-CHF etc 

VS

GBP-USD, GBP-JPY, GBP-AUD, GBP-CAD, GBP-CHF etc

Monthly + Daily Bullish 

Weekly + 4H Bearish

The expected fluctuation range on Monday potentially within the 4H bollinger bands indicator. We will wait and see what it will do. So here is the video analyis

 

 eur gbp analysis today | eur gbp forecast | eur gbp strategy | eurgbp correlation | eur gbp trading strategy | forex | forex trading | forex signal | forex signals | forex forecast

EUR-USD and GBP-USD Technical (1 - 5 December 2014)

MACD Settings:- First EMA = 12 | Second EMA = 26 | Signal EMA = 9

Stochastic Settings:- Period = 5 | Average Period Fast = 7 | Average Period Full =7

Bollinger Bands Settings:- Average = 20 | Standard Deviation = 2

Date: 29 November 2014

Time: 8:05 PM (+8 GMT)

EUR-USD
Technical.Indicators	4 Hourly	Daily	Weekly	Monthly
MACD	UP	UP	DOWN	DOWN
Full Stochastic	UP	DOWN	UP	DOWN
Bollinger Bands	N/A	N/A	N/A	N/A
Chart Formation	N/A	N/A	N/A	N/A
Market Direction	UP	NEUTRAL	NEUTRAL	DOWN
Market Comments	In short term EUR-USD fluctuation is very much neutral last week from 24 to 28 November 2014 as it goes up for correction at 1.2529 and then it goes down to 50% retracement at 1.24511. This 50% retracement where will the EUR-USD market goes to next week? Fundamental Perspective Forexfactory economic calender records from 1 to 5 December 2014 could be another week for high turbulence as there mix economic data between the US and Economic. Technical Perspective From technical perspective we can see that the entire trend is going down as shown by the MACD and Stochastic from monthly time frame. However in the intermediate and short term both indicators are going against each other which means the fluctuation could be neutral either ups or down. This is another factor that could confirm the turbulence fluctuation next week. Fluctuation Range: High = 1.2529 Low = 1.2361

4 Hourly Chart for EUR-USD showing the current position standing at 50% retracement level.

GBP-USD
Technical.Indicators	4 Hourly	Daily	Weekly	Monthly
MACD	DOWN	UP	DOWN	DOWN
Full Stochastic	DOWN	UP	DOWN	DOWN
Bollinger Bands	N/A	N/A	N/A	N/A
Chart Formation	N/A	N/A	N/A	N/A
Market Direction	DOWN	UP	DOWN	DOWN
Market Comments	Last week movement the GBP-USD make up correction to a new high at 1.58154 but then went down to the previous low at 1.5627. As the MACD and Stochastic in the daily time frame still going up there is strong chance it may go up temporarily at least 50% from the current position. However the intermediate and long term are both indicating down trend, there will be strong risk to play upside position. Where will it move next week? Fundamental Perspective: Mix economic data may cause an unpredictable situation, playing upside would be most unfavorable because of the risk of the major downtrend. Bad economic data from the UK could push the market even deeper down. Otherwise it will retrace at 50% from the current position Technical Perspective: In daily time frame there is still hope of going up at the very least up to 50% from the current position as MACD and Stochastic still synced upwards direction. However on the weekly and monthly time frame it is obvious the pair is going down big time. Range of Fluctuation High = 1.5815 Mid = 1.5712 Low = 1.5627

4 Hourly Chart for GBP-USD showing it is currently standing at the previous low level at 1.56271

EUR-GBP Technical Analysis (31 October 2014)

MACD Settings:- First EMA = 12 | Second EMA = 26 | Signal EMA = 9

Stochastic Settings:- Period = 5 | Average Period Fast = 7 | Average Period Full =7

Bollinger Bands Settings:- Average = 20 | Standard Deviation = 2

Date: 31 October 2014

Time: 2:55PM (+8 GMT)

EUR-GBP
Technical.Indicators	4 Hourly	Daily	Weekly	Monthly
MACD	DOWN	DOWN	UP	DOWN
Full Stochastic	DOWN	UP	DOWN	DOWN
Bollinger Bands	BOTTOM	MIDDLE	BOTTOM	BOTTOM
Chart Formation	Head/Shoulder	Head/Shoulder	Falling Wedges	Falling Wedges
Market Direction	DOWN	NEUTRAL	NEUTRAL	DOWN
Market Comments	Short Term = DOWN SIDEWAYS Intermediate Term = Sideways Long-Term = Down

Based on technical MACD and Stochastic indicators signal, the short term movement of the EUR-GBP indicate a downturn with the possible target at 0.7771. This is supported by the sign of head and shoulder formation at the 4 Hourly. In Daily time frame there is a contra-direction between the MACD and Stochastic resisting the falls keeping it moving sideways rallying at the current position 0.7868, this create a possibility of sideways fluctuation within the range of 0.7771 (bottom) and 0.8019 (top).

Let's see what are the sentiment indicators data based on traders open position on the EUR-GBP. In the short-term SSI indicator shows a mix of data between the providers where OANDA 65.3% open position are buying and Forex Factory 53% and Saxo Bank 60.04% are selling.

Sentiment Index Providers	Buy Sentiment	Sell Sentiment
Forex Factory	47%	53%
OANDA	65.3%	34.12%
Saxo Bank	39.96%	60.04%

As MACD and Stochastic is moving against each other - the intermediate term opens up the possibility to move sideways gradually initiating correction which is unlikely as the chart already complete 3 major peak cycles. However not to underestimate the market if re-tracement should happen then 0.7990 should be the most ideal level to hit.

In the long-term perspective we can see obviously 3 falling wedges which means the downfall cycles is completed. There is no historical correction level left that we can see on the monthly chart. Furthermore the MACD and Stochastic is also synchronized downwards which means the only way is going down. The Euro currency has been dominating against the Pound Sterling for 8 years since 2006, and this time on-wards could be the GBP era to take charge with the target direction at 0.6798.

That's the conclusion we can make based on the historical data of the EUR-GBP movement in the long-term. But not to forget a new economic landscape could change the whole situation as there is a sense of indication that MACD and Stochastic are wearing out. This could trigger a temporary/permanent upward movement.

Historically the Eurzone and Britain interest rates are moving in synced for many years since the introduction of Euro currency. And for that reasons chart movement of EUR and GBP against other currencies i.e. USD, GPY, etc are identical. The slight differences of the movement can be seen on the EUR-GBP graph.

EUR-GBP Technical Analysis - 14 February 2011

There is seems to be strong resistant for the EUR-GBP pair to move down, even though the MACD is already on the downward direction. But the situation is never to be underestimated because it can happen drastically at any unexpected moment. Let's see the EUR-GBP in technical point of view in the long-term trend in monthly time frame.

• Chart Trend = Gradual movement downward indicating that the trend is building momentum for drastic fall downward.
• MACD = Pointing downward, supporting the trend to fall further.
• Stochastic = Pointing upward, maintaining the short-term resistant for the pair not to fall too quickly.
• Overbought = The previous overbought position at 0.9500 re-enforce the need for correction downside.

If the above condition failed to materialize and the resistance is able to defend itself until MACD switch direction upside. Then the shift of power to Bullish might be more imminent.

EUR-GBP Technical Analysis - 06 December 2010

EUR-GBP long-term perspective still uncertain as MACD and stochastic are moving in contra-direction against each other. MACD is heading downward while stochastic is upward, maintaining the strong balance of power between the bullish and bearish traders at 50% Fibonacci support resistant level.

However since MACD is dominant over the stochastic, the trend movement should favor down side in the long-run. Fibonacci analysis shows that the ideal place for downfall should reside somewhere at 61.8% Fibonacci line see chart below.

Post Office Tracking Renew Antivirus Store