EUR/GBP Technical Analysis – Resistance Above 0.81 Holds Up
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8104 (76.4% Fib exp), 0.8089 (channel top)
- Resistance:0.8133 (61.8% Fib exp.), 0.8157 (50% Fib exp.)
The Euro is struggling to maintain upward momentum against the British Pound after taking out falling channel in play since late April. Near-term resistance is marked by the 61.8% Fibonacci expansion at 0.8133, with a daily close above that clearing the way for a test of the 50% level at 0.8157. Support is at 0.8104, the 76.4% Fib. A reversal below that exposes the channel top – now recast as support – at 0.8089.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. Wewill remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.