EUR/GBP Technical Analysis | EUR/GBP Trading: 2018-02-14 | IFCM UK
IFC Markets Online CFD Broker

EUR/GBP Technical Analysis - EUR/GBP Trading: 2018-02-14

Disagreements emerged between the EU and the UK over Brexit conditions

The British government estimated that the rates of the 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 EURGBP 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.

EURGBP

On the daily timeframe, EURGBP: D1 went to the top from the falling range. 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 Brexit transition period deal is not signed.

The bullish momentum may develop in case EURGBP 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 breakeven 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

PositionBuy
Buy stopabove 0,891
Stop lossbelow 0,871

IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger