NATO Statement Makes EURGBP Drop?
“At the moment, we have not seen the withdrawal of Russian troops”
NATO Secretary General Jens Stoltenberg denied that Russia had withdrawn troops from the Ukrainian border. He said the military alliance saw no sign that Moscow was reducing its troop numbers around Ukraine. NATO accuses Russia of misleading the world by saying it is pulling troops to base. In contrast, NATO reports Moscow is adding as many as 7,000 more troops near the Ukrainian border. Will war break out? But for sure, the value of the Euro has continued to weaken since the beginning of 2022.
Quick Recap on EUR/GBP
EURGBP proved to be still bearish after forming a new lower low and now seems to be looking for a lower high area before falling again.
Let’s dive in a little deeper to see how EURGBP fare on multiple timeframes:
EUR/GBP Monthly Technical Analysis
On the monthly timeframe, EURGBP still clearly shows bearish sentiment by being on all moving average lines and has managed to break the support at 0.8400.
EUR/GBP Weekly Technical Analysis
On a weekly basis, last week’s EG candle closed bearish and this week has broken its lowest level from last week. It looks like the EURGBP candle will close bearish in a few hours.
EUR/GBP Daily Technical Analysis
On the daily timeframe, EURGBP has formed a new lower low. Currently the price is looking for the lower high area before falling back down. The pair is very likely to plunge towards the strong support around 0.83100.
Trading idea for EUR/GBP
On H4, we can identify a fakeout pattern that has formed and the price has formed a lower low again. So we can anticipate by using sell limit.
Order: Sell Limit
Stop Loss: 0.84050
Target 1: 0.83600 (50% + BE)
Target 2: 0.83400 (25%)
Target 3: 0.83100 (25%)
Total Risk: Max 1-2% Equity (Medium Risk Setup)
Reason: Bearish structure, QM Pattern
ZFX Analyst’s Predictions
NATO’s statement about Russia adding troops to Ukraine’s border appears to be in the world’s spotlight. It is not impossible that next week Russia will launch an invasion of its neighboring countries. It should also be borne in mind that Ukraine has assistance from the United States and its allies. From a technical point of view, the movement and structure of the EURGBP itself continues to show weakness. EG could head towards the strong daily support at 0.83200 in the near term.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!