EUR/GBP Capped Within Resistance Zone

Good morning traders,

With some really exciting updates and changes to the design of the Vantage FX website, a lot of my time is drawn away from the markets and toward helping with the implementation of that. As a result, I didn’t manage to get a technical analysis blog published yesterday, but hopefully today’s offering picks up some of the slack!

The EUR/GBP swing high resistance obviously wasn’t enough to keep the pair capped, but I wanted to take the opportunity today to discuss why I see a zone rather than a hard level in this particular forex currency pair.

EUR/GBP Daily:

Click on chart to see a larger view.

Price is hugging the top of that bullish channel, which is the obvious area of resistance on the EUR/GBP daily chart. But as you can see here, there’s also quite the large horizontal resistance zone with no real clear top to draw a single line from.

As you well know, each forex currency pair has a personality all of its own. In my opinion, EUR/GBP just isn’t the type of pair that touches support/resistance and then immediately moves away. Like all pairs, it respects major levels, but it consolidates in a lot of sideways price action before moving off or through them.

Now just look back at the 2016 spikes that my horizontal resistance levels have tried to be drawn off and look at the price action at that time. Like I said above, there is definitely a level there, but the sideways choppy price action makes it much more of a zone. What a zone at that!

For me, that channel resistance inside a huge resistance zone just isn’t clear enough to cleanly be able to trade the level. The best bet here is to wait and see what sort of reversal pattern that the charts print in here and then zoom in and look for short term support turned resistance to possibly short off.

Do you agree with my views on the personality of EUR/GBP? Let me know your thoughts by mentioning @VantageFX on Twitter.

Best of probabilities to you!

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog