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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7029, 0.6949, 0.6883
- Resistance: 0.7079, 0.7109, 0.7160
The Euro continues to correct higher against the British Pound after finding support below the 0.70 figure. Near-term resistance is at 0.7079, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing falling trend line resistance at 0.7109. Alternatively, a turn below the 23.6% Fib at 0.7029 clears the way for a test of the 38.2% expansion at 0.6949.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
