Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/GBP Daily Outlook- August 11, 2014

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The EUR/GBP pair rose during the course of the session on Friday, breaking higher and heading to the 0.80 level. This is an area of significant resistance as far as I can see, and as a result I think that buying here is going to be difficult as the market has a significant amount of resistance all the way to the 0.8050 level. We get above there though, and I think all bets are off as the downtrend could be in serious trouble at that point in time.

We are at a decent point of inflection and far as I can see, so I’m watching this for the next couple of days as I think we will make some type of decision in this area. A resistive candle between here and the 0.8050 level of course is very negative and could continue the downtrend, but the weekly candle of course is a hammer, and that is very positive. It’s a conflicting signal, but it is one that I have to pay attention to simply because weekly hammers tend to mean things.

Patience will pay off in this pair.

I believe that if you’re careful and wait some time to make a decision, you could profit quite nicely off of this potential move. After all, a break down from here should lead to the 0.7750 level, and then possibly the 0.75 handle which is a much more important support level on the longer-term charts. It’s also a large, round, psychologically significant number, so of course it makes sense that the market would be attracted to it.

On the other hand, if we break above the 0.8050 level, I think that we could very easily go to the 0.8150 level as it is the next “cluster.” At that level, I would expect to see quite a bit of selling pressure, but ultimately I think if we reach their we could probably pull back and start buying again. I think that could in fact be a trend changer, as the market will certainly have lost downward momentum at that point.

EURGBP 81114

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews