Listen to the latest market mood for the EURGBP pair.


Strong EUR, Weak GBP

The GBP continues to look vulnerable medium term as the UK has still not arranged a trade deal with the EU. EU’s Chief Brexit Negotiator Barnier warned that British negotiators will not be able to insulate London from the impact of Brexit. Over 100 UK company heads have recently warned PM Johnson of the huge damage to the UK economy if Britain exits the EU without a trade agreement.

By contrast, Europe has falling COVID-19 cases and a huge spending PEPP programme of over €1 trillion alongside a proposed Recovery Fund to support the most struggling EU members like Italy. This should keep the EUR supported.

Therefore, expect EURGBP buyers on pullbacks medium term.

Swing trade outlook – We expect this trade to play out over the next 2 weeks. However, the trade will remain valid for as long as its underlying factors remain valid.


Trade Risks

If we see a swift rise in European COVID-19 cases that will also invalidate this outlook.

If we see the ‘frugal four’ (Austria, Denmark, Netherlands, and Sweden) reject the recovery fund this will drag the EUR down.


Entry/Exit Guide

Entry: 0.6561 buy on stop

Stop loss: 0.6551

Target: 0.6000



Learn more about HYCM


High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD: Bears trying to sneak in below 0.6950 but bulls give a healthy fight

AUD/USD kick-starts the week with a gap-down, seesaws around 0.6930 afterward. A surge in the virus cases, hospitalizations in the US, escalating Sino-American tension question market sentiment. 


USD/JPY slightly offered in the open, eyes on coronavirus headlines

The yen has picked up a start of the week bid across the board, moving up against the US dollar by 5 pips to a low of 107.42 from high of 107.47, falling further away from the end of week 107.50s. 


What you need to know for the open: Summer lull or a COVID-19 tidal wave of panic-vol?

AUD/USD is the currency pair in focus for this week. Coronavirus developments vs economic recovery are on every trader's playbook. Key data for the week will kick in with US jobs updates, ISM Manufacturing and the RBA meeting. 

Read more

Gold: Buyers can ignore soft weekly open below $1,775

Gold prices offered a downside gap near $1,774 to kick-start with the week on a back foot. Pandemic fears, geopolitical tensions keep safe-haven buyers strong amid global policymakers’ fight against economic suppression.

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more

Forex Majors