EUR/GBP drifting lower in a downtrend parallel channel

EUR/GBP drifting lower in a downtrend parallel channel

Euro/pound fell below the 0.86 line and continues dropping. The relative strength of the British economy together with weakness in the euro-zone continues to weigh on the pair after it failed to conquer the 0.87 handle.

Since that attempt, the pair is clearly trading in a downtrend parallel channel. It still has a way to go on the downside, as the chart shows:

EUR GBP Downtrend Parallel Channel on the hourly chart July 22 2013


The recent strength of the pound came after the MPC Meeting Minutes showed that the decision not to announce new QE was unanimous. In addition, a big drop in jobless claims and a strong retail sales figure also supported sterling.

In the euro-zone, there are doubts about the economic strength of Germany and France, as other countries are are deep in a recession.

In the bigger picture, EUR/GBP was moving up (or GBP/EUR was going down) for quite a while, but this trend might have changed now. Here is a look at the daily chart:

EUR GBP Daily chart July 22 2013 Has the trend reversed for the currency pair

Further reading:  5 Most Predictable Currency Pairs – Q3 2013


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.