EUR/GBP Technical Analysis: Resistance Above 0.71 Holds Up
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7060, 0.6930, 0.6868
- Resistance: 0.7141, 0.7206, 0.7271
The Euro paused to digest gains after breaking three-month trend line resistance against the British Pound. Near-term resistance is at 0.7141, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.7206. Alternatively, a move below the 23.6% level at 0.7060 clears the way for a test of the 0.6930-50 area (July 17 and August 5 lows).
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 that taking up the short side is premature. With that in mind, we will remain flat for now.
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--- 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.