EUR/GBP Technical Analysis: Euro Moves to 2-Week High
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7819, 0.7777, 0.7740
- Resistance: 0.7880, 0.7915, 0.7950
The Euro resumed its recovery against the British Pound, advancing to the highest level in two weeks. Near-term resistance is at 0.7880, the 38.2% Fibonacci retracement, with a daily close above that exposing the 0.7907-15 zone bracketed by a previously broken triangle pattern bottom and the 50% level. Alternatively, a reversal below the October 3 low at 0.7819 opens the door for a test of 0.7777, the July 2012 bottom.
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 taking up the short side is premature. With that in mind we will remain flat for now.
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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.