Partner Center Find a Broker

I’m starting the trading week off with a quick look at this textbook trend pullback setup on EUR/GBP.

Take a look at these correction levels!

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. preliminary UoM consumer sentiment index improved from 58.2 to 59.5

U.S. preliminary UoM consumer inflation expectations dipped from 4.8% to 4.6%

U.S. President Biden says they will defend Taiwan in event of Chinese invasion

Japanese markets closed on holiday

New Zealand BusinessNZ services index climbed from 54.4 to 58.6

PBoC cut 14-day open market operations reverse repo rate from 2.25% to 2.15%

China lifts lockdowns on Chengdu and Dalian

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.K. markets closed for Queen Elizabeth II’s state funeral
U.S. NAHB housing market index at 2:00 pm GMT
Japanese national core CPI at 11:30 pm GMT
RBA monetary policy meeting minutes at 1:30 am GMT (Sept. 20)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

This busy trading week is off to a bit of a slow start, so I’m just looking at this simple trend play on the short-term chart of EUR/GBP.

The pair has formed higher lows and higher highs inside a rising channel that’s been holding all month, and it looks like another test of support is due.

Using the handy-dandy Fib retracement tool on the latest rally shows that the 61.8% level lines up with the channel support at .8685 while the 50% level is closer to an area of interest.

That’s right around a former resistance level, the 100 SMA dynamic inflection point, and the .8700 major psychological support.

Technical indicators are suggesting that the climb is more likely to gain traction than to reverse. The 100 SMA is above the 200 SMA to reflect bullish momentum while Stochastic is dipping into the oversold region to indicate exhaustion among sellers.

Once the oscillator turns higher, euro bulls might get the green light to charge again and take EUR/GBP back up to the swing high and beyond.

U.K. markets are closed for the Queen’s state funeral today, though, so we might be in for lower liquidity and possibly higher volatility in the upcoming sessions.