Euro slips against British pound on Tuesday

The Euro slipped against the British pound during the trading session on Tuesday, reaching down towards the 0.8775 handle before finding a bit of support. The question is now whether we can reenter the previous consolidation area?
Christopher Lewis
EUR/GBP daily chart, May 16, 2018

The EUR/GBP pair has broken down significantly during the trading session, reaching down to the 0.8775 handle. We have bounce a bit since then, so I think that we could reach towards the previous consolidation area again. If we do, then I think the market will continue to reach towards the 0.8825 handle. Ultimately, if we were to break down below the 0.8775 handle, then I think the market probably goes down to the 0.8750 level. I think that ultimately this is a market that will be very noisy, as we continue the negotiations. However, I recognize that showing signs of stability in this area suggests that we could get a bit of a bounce. I believe this continues to be a very short-term driven market, based upon headlines more than anything else.

During the day on Tuesday, we saw a lot of US dollar strength, and that had a lot to do with where things went. Essentially, the Euro broke down a bit more than the British pound. That’s where we end up in this pair, a little bit lower. I think ultimately things will settle down and we will go back into the range, but if we do break down from here I think the 0.8750 level will begin a significant amount of support.

As I have been trading this market from a short-term perspective, I should point out that the stochastic oscillator is crossing in the oversold area, so that is another reason why think a bounce might be coming rather soon. However, I don’t think we get a massive move higher.

EUR/GBP Video 16.05.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.