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- EUR/GBP Technical Strategy: Flat
- Support: 0.8287 (23.6% Fib exp.), 0.8245 (Mar 28 low), 0.8230 (Apr 8 low)
- Resistance: 0.8322 (38.2% Fib exp.), 0.8351 (50% Fib exp.)
The Euro began to recover as expected against the British Pound after prices put in a bullish Three Inside Up candlestick pattern. Prices are retesting the 23.6% Fibonacci expansion at 0.8287 as support having broken above the barrier last week. A daily close back underneath this level targets recent swing lows at 0.8245 and 0.8230. Alternatively, a renewed push higher sees resistance at 0.8322, the 38.2% Fib, followed by the 50% expansion at 0.8351.
Signs of indecision in the bullish camp following a test of the 0.83 figure argue against trying to chase the pair higher at this point. We will stand aside, monitoring developments for an attractive trade setup.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com