EUR/GBP Technical Analysis: Downturn Pauses Below 0.70

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.6985, 0.6930, 0.6876
• Resistance: 0.7051, 0.7104, 0.7159

The Euro declined against the British Pound as expected after producing a bearish Dark Cloud Cover candlestick pattern. A daily close below the 38.2% Fibonacci expansion at 0.6985 exposes the 50% level at 0.6930. Alternatively, a reversal back above the 23.6% Fib at 0.7051 opens the door for a challenge of trend line resistance at 0.7104.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.

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