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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7216, 0.7139, 0.7013
- Resistance: 0.7342, 0.7443, 0.7545
The Euro moved upward against the British Pound as expected after producing a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7342, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.7443. Alternatively, a turn below the 23.6% Fib at 0.7216clears the way for a challenge of 0.7139, the intersection of trend line resistance-turned-support and the 14.6% retracement.
Our long-term outlook calls for broad-based Euro weakness. With that in mind, we will treat any on-coming gains as corrective, looking to enter short at a more attractive level rather than a seeing the move higher as a buying opportunity. In the meantime, we remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
