To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
