EUR/GBP Price Forecast: Downtrend unfolding

EUR/GBP is extending its short and medium-term downtrends.
There is a possibility it could stall temporarily as it has reached its first downside target.

Joaquin Monfort FXStreet

EUR/GBP has broken decisively below the July 18 (2024) low and reached the next key target level at 0.8343.

EUR/GBP Daily Chart

The trend is bearish both in the short and medium-term and given the principle that “the trend is your friend” this means the odds favor more downside.

EUR/GBP might stall at the current level but this is likely to be temporary.

If it closes below 0.8340 on a daily basis it will probably signal more downside towards the next target at 0.8287, the August 2022 low.

The Relative Strength Index (RSI) has entered the oversold region on an intraday basis. If it closes in oversold, it would advise traders not to add to their short positions as there is a risk of a pullback occurring.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

GBP/USD flirts with two-week tops around 1.3270

GBP/USD makes a U-turn and adds to Monday’s uptick, advancing to the area of two-week highs near 1.3270 on Tuesday. Meanwhile, Cable’s better tone follows a loss of upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD stays offered, flirts with 1.1400

EUR/USD manages to reverse the early drop and now trades with marginal gains near 1.1420 on Tuesday. The pair’s recovery comes in response to some loss of momentum in the US Dollar.

Gold keeps the positive mood above $4,000

Following multi-month lows near $3,950, Gold now manages to regain some composure and reclaim the area beyond the key $4,000 yardstick per troy ounce on Wednesday. Still, any meaningful recovery appears limited as a broadly firmer US Dollar and rising US Treasury yields weigh on the yellow metal.

Ripple defends critical support, Stellar extends recovery

Ripple (XRP) trades around the key $1.00 psychological level, consolidating as the token awaits its next directional catalyst. Stellar (XLM) extends its recovery above $0.178 after posting modest gains at the start of this week.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.