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- EUR/GBP Technical Strategy: Flat
- Support: 0.7992 (50% Fib exp.), 0.7955 (61.8% Fib exp.)
- Resistance:0.8030 (38.2% Fib exp.), 0.8076-81 (May 23 low, 23.6% Fib exp.)
The Euro continued to sink against the British Pound after the latter currency found a boost in supportive rhetoric from BOE Governor Carney. Support is now at 0.7992, the 50% Fibonacci expansion, with a break below that targeting the 61.8% level at 0.7955. Alternatively, a reversal above the 38.2% Fib at 0.8030 on a daily closing basis aims for the 0.8076-81 area marked by the 23.6% expansion and the May 23 low.
Risk/reward considerations argue against entering short with prices sitting just above support. On the other hand, taking up the long side is premature absent a defined bullish reversal signal. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com