EUR/GBP Technical Analysis – Head and Shoulders Forming?
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8230 (Apr 8 low)
- Resistance: 0.8322 (38.2% Fib exp.), 0.8351 (50% Fib exp.)
The Euro may be carving out a significant bottom against the British Pound, with prices tracing out what may become a Head and Shoulders (H&S) bottom chart pattern. Confirmation requires a daily close above neckline resistance at 0.8294, a move that would initially expose the 38.2% Fibonacci expansion at 0.8322. Longer term, the H&S formation would imply a measured upside objective at 0.8358 if the setup is fully realized. Near-term support is at 0.8230, the April 8 low. We will remain on the sidelines for the time being, waiting for completion of the H&S setup to look for buying opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com