Breaking News

Technical Analysis EURGBP : 2018-02-14

By IFC Markets (Ara Zohrabian)ForexFeb 14, 2018 08:56AM ET
Technical Analysis EURGBP : 2018-02-14
By IFC Markets (Ara Zohrabian)   |  Feb 14, 2018 08:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Disagreements emerged between the EU and the UK over Brexit conditions.

The British government estimated that the rate of British economic growth will go down by 5% because of Brexit if a trade deal is signed with the European Union. In case of no agreement, the slowdown in the growth rates may be 8%. Will EUR/GBP quotes advance?

Their increase means a strengthening of the euro against the British pound. The Best for Britain Group calculated that if Brexit occurs without a free trade deal, the losses of the British economy may amount to $348 bln in 15 years. If the deal is signed, the losses will be less amounting to $181 bln. If the UK leaves the EU but retains membership in the Customs Union and the single market of the EU, its financial losses will be as low as possible and amount to $72 bln. Recall, that earlier, the British authorities announced that there would not be a second referendum on Brexit. The EU representative at Brexit negotiations said last week that the parties have serious inconsistencies in the conditions of the 2-year transition period. Because of this, the signing of the relevant deal scheduled for the next month may be aborted. On Friday, British Prime Minister Theresa May will meet German Chancellor Angela Merkel to discuss these issues. An additional negative for the pound may be an increase in the UK foreign trade deficit in December.

EUR/GBP D1 Chart
EUR/GBP D1 Chart

On the daily time frame, EUR/GBP: D1 came out of the falling range and has been rising. The further price increase is possible in case of the publication of positive economic data in the eurozone and negative ones in Great Britain, as well as in case a Brexit transition period deal is not signed.

  • The Parabolic indicator gives a bullish signal.
  • The Bollinger® bands have widened, which means higher volatility. They are tilted upwards.
  • The RSI indicator is above 50. No divergence.
  • The MACD indicator gives a bullish signal.

The bullish momentum may develop in case EUR/GBP exceeds the last fractal high at 0.891. This level may serve as an entry point. The initial stop loss may be placed below the two last fractal lows, the lower Bollinger band and the Parabolic signal at 0.871. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the break-even point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level at 0.871 without reaching the order at 0.891, we recommend cancelling the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

Position - Buy
Buy stop - above 0,891
Stop loss - below 0,871

Technical Analysis EURGBP : 2018-02-14

Related Articles

Technical Analysis EURGBP : 2018-02-14

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fulfilling trading operations under conditions of significant leverage, or relatively little changes of the rate of financial tool (currency pair, index, etc.) can cause significant changes to the customer trading account (proportionally to this leverage) . At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy. Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.
Continue with Google
Sign up with Email