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Forex: EUR/GBP Technical Analysis – Resistance Below 0.84 Held

By , Currency Strategist
12 March 2014 01:19 GMT

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8307 (trend line)
  • Resistance:0.8348 (Jan 13 high), 0.8390 (23.6% Fib exp.)

The Euro is stalling at near-term resistance at 0.8348, the January 13 high, after producing a significant breakout against the British Pound. A continued push higher targets the 38.2% Fibonacci retracement at 0.8390. Falling trend line resistance-turned-support begins at 0.8307.

Prices are too close to relevant resistance to justify a long position from a risk/reward perspective at this point. Meanwhile, an indecision candle on the latest daily bar may precede a pullback but could just as well amount to nothing more than a pause in the advance. This warns against attempting to get short for now and we will continue to stand aside.

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dailyclassics_eur-chf_body_Picture_11.png, Forex: EUR/GBP Technical Analysis – Resistance Below 0.84 Held

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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12 March 2014 01:19 GMT