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- EUR/GBP Technical Strategy: Flat
- Support: 0.8195 (Apr 30 low), 0.8172 (double bottom)
- Resistance: 0.8243 (23.6% Fib ret.), 0.8273 (38.2% Fib ret.)
The Euro is oscillating in a well-defined range above the April 30 low at 0.8195 against the British Pound. Near-term resistance is at 0.8243, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8273. Alternatively, a reversal back below 0.8195 aims for double bottom support at 0.8172.
Positioning is not offering clear-cut clues telegraphing the near-term directional bias, although early signs of positive RSI divergence argue in favor of an upside scenario. We will remain on the sidelines for the time being, looking for confirmation on a break above the range top to identify a buying opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com