EUR/GBP Technical Analysis – Prices put in a bullish Piercing Line candlestick pattern above support in the 0.8583-90 area marked by a horizontal pivot dating back to mid-February and the 38.2% Fibonacci retracement. Near-term resistance is at 0.8636, the 23.6% Fib, with a break above that exposing the July 17 high at 0.8710. Alternatively, a reversal below support eyes the 50% level at 0.8553. The weekly chart seems to outline the makings of a short trade setup but confirmation is absent for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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