GBP vs EUR and USD: strategic look

GBP vs EUR and USD: strategic look

2020-10-22 • Updated

Brexit is stalled, but both the EU and the UK express hopes for a successful resolution. These hopes recently sparked an aggressive spike the GBP went on against the EUR and the USD. What’s the technical outlook?


As surprising as it may sound, those strong moves don’t introduce any change into the existing trends. On a daily chart below, the last large green candlestick is exactly the rise of GBP/USD on Wednesday. The move was really big and doesn’t even have a similar one in magnitude on this panorama. But tactically, it falls well into the uptrend that has been in the place since the middle of September. From below 1.30, GBP/USD rose above 1.31. Most probably, it will go into bearish correction above 1.30 to eventually reverse and rise back above 1.31 on the other side of the uptrend.



Pretty much the same applies to EUR/GBP. After hanging above 0.9040, it plunged down to almost 0.9000. Tactically, that’s just another wave in in a local downtrend that has been in the place since the middle of September. A large one though – you can see that last long red candlestick between 0.9150 and 0.9000. Strategically, that downtrend itself is just another wave in a larger gradual uptrend that’s visible all across the chart. So the observers are right to say that Brexit is merely a local episode for the UK economy – the fundamental factors is what matters.


                                                                                                    LOG IN


Nasdaq 100 (US100): Toward 17750
Nasdaq 100 (US100): Toward 17750

Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera