EUR/GBP Technical Analysis: Double Bottom in the Works?

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7403, 0.7361, 0.7290
• Resistance: 0.7449, 0.7503, 0.7591

The Euro is stalling after falling to retest the late January low above the 0.74 figure against the British Pound. Positive RSI divergence hints a bounce may be ahead however. Near-term resistance is at 0.7449, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 14.6% level at 0.7503. Alternatively, a reversal below the January 26 lowat 0.7403 clears the way for a test of the 38.2% Fib at 0.7361.

The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com