EUR/GBP Signal Today - 22/10: EUR Vs GBP Support (Chart)

(MENAFN- Daily Forex) Potential Signal:

I'd be a seller of this pair if we get a daily close below the 0.83 level, with a stop loss near the 0.8350 level. My target would be 0.8150 level over the longer term, but I recognize this will be a very noisy move.

• In my daily analysis of the EUR/GBP pair, I can see that there is a clear significant support level near the 0.83 level underneath, which of course is a large, round, psychologically significant figure, and it is also an area that has been supported multiple times in the past.
• Because of this, I think this is a certain amount of“market memory” coming into the picture, as market participants tend to pay close attention to areas that we have moved in both directions.

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If we were to break down below the 0.83 level, then I think you have a situation where traders will continue to see the area as important, and as long as we can stay above there, there is some chance of the euro rallying.

However, this is a market that I think continues to see a lot of back and forth, as it appears that we are trying to form some type of bottoming pattern. Because of this, think it's a situation where we can see a lot of noisy behavior, but I think ultimately this is an area that a lot of people will be focused on we can break higher

If we can break higher from here, the 50 Day EMA sits near the 0.84 level, as it is an area that's previously been both support and resistance. For that, I would also pay close attention to the 50 Day EMA, which sits near the 0.84 level, and is dropping.

EURUSD Chart by TradingView

Ultimately, this is a market that I think continues to see a lot of technical factors, and that is an area the market will continue to pay close attention to. You can track these movements on the EUR/GBP live chart . In fact, if we can break above the 0.84 level, it's very likely that the euro will continue to move much higher.

Breaking above the 0.84 level, then it's possible that the market could go looking to the 200 Day EMA, but that is sitting just below the 0.85 level, which obviously is a large, round, psychologically significant figure as well.

Because of this, I think that we could very well rally from here, but we need to see some type of fundamental reason for traders to start shorting the pound. As things stand right now, I just don't see it. If we were to break down below the 0.83 level, then we could see the floor fallout in this pair, but right now it looks as if it is holding very tough.

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