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Buying or Shorting EUR/GBP? Technical support & resistance

January 7, 2021 12:14
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Euro, GBP,

Today we discuss the latest news connected with EUR/GBP and how to short or buy this currency pair. You will also find the technical support and resistance levels for EUR against GBP, pointed out by the technical analysis expert Stanko.

Markets are easily affected by unpredictable events, and most traders are now taking advantage of declining needs. Coronavirus-related concerns affected European equities, but the EUR remains supported against most major currency pairs.

A pandemic disrupted financial markets and the global economy in 2020, the European Central Bank announced an initial €120 billion package and a new Pandemic Emergency Purchase Program (PEPP) of €750 billion for 2020. It is also important to mention that European policymakers expanded their stimulus program to €1.85 trillion in their December meeting. The EU released the preliminary estimate of December Consumer Confidence, which improved to -13.0 from -17.6 in the previous month.

Despite tough restrictions, the UK reported a record of over 53K new coronavirus contagions on Tuesday, and the number of death surpassed 71K. The UK has approved the emergency use of the AstraZeneca vaccine last week and will start applying it at the beginning of next week. Combined with the Pfizer vaccine currently in use, the country has an ambitious plan to vaccinate 2 million people per week. You can trade EUR/GBP with Skilling (review), one of the top Scandinavian brokers with low spread, quick trades and great support. Try Skilling now!

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How to short EUR/GBP

The EUR/GBP currency pair has advanced in the 2020 year, but my opinion is that there will certainly be many opportunities for both buying and shorting this currency pair. Shorting the EUR/GBP means that you are betting against this currency pair, and when you short the EUR/GBP, you are expecting the price to go down instead of up. So you can make money when the price goes in the opposite direction, and for those with great skill is a way to make some good money.

One of the easiest ways to short EUR/GBP is through a trading platform such as Capital (review). You will easily enjoy this excellent global broker with over 5000 instruments and lots of pairs with both EUR and GBP. Try Capital today!

Most trading brokers allow this type of short selling trading, but they always have the option to go long as well. Margin trades allowing investors to “borrow” money from a broker to make a trade. It's important to remember that there may be a leverage factor, which could either increase your profits or your losses. It's not a good idea to hold a short position for long periods or to leave an open short position with no stop-loss order. Many exchanges allow margin trading, but it is very hard to say which platform is the best because this depends on each investor/trader's experience and habits.

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Technical analysis of EUR vs GBP

The EUR/GBP currency pair has advanced in the 2020 year, but my opinion is that there will undoubtedly be lots of opportunities for shorting this currency pair. The global political tensions also have a big influence on this pair, and the pair needs to fall below the 0.8900 level to extend moves lower.

I marked support and resistance levels on this chart- 0.9000 and 0.9100 represent the current resistance levels, 0.8900 and 0.8800 are the current support levels on this chart. If the price jumps above 0.9000, it would probably reach the 0.9050 level very soon; the next target could be located around 0.9100. If the price falls below 0.8900, that could be a very good opportunity for the short- term traders; short-term traders can put the stop loss at 0.8915 and take profit at 0.8870 or below.

EUR/GBP graph

Conclusion

The EUR/GBP currency pair has advanced in the 2020 year, but my opinion is that there will certainly be lots of opportunities for shorting this currency pair. A pandemic disrupted financial markets and the global economy in 2020, the European Central Bank announced an initial €120 billion package and a new Pandemic Emergency Purchase Program (PEPP) of €750 billion for 2020. The UK Parliament will vote on the post-Brexit deal with the EU, which is expected to pass according to analysts. Despite tough restrictions, the UK reported a record of over 53K new coronavirus contagions on Tuesday, and the number of death surpassed 71K. If the price falls below 0.8900, that could be a very good opportunity for the short- term traders. Several technical short-term traders put the stop loss at 0.8915 and take profit at 0.8870 or below. Explore trading with eToro (review) today. They give you inspiration and allow following other successful traders strategies. Give eToro a try now (for US traders) or click here for European and Asian traders!

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