Forex: EUR/GBP Technical Analysis – Drifting Toward January Low
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8191 (38.2% Fib exp.), 0.8156-67 (Jan 22 low, 50% Fib exp.)
- Resistance: 0.8235 (23.6% Fib exp.), 0.8283 (falling trend line)
The Euro is back on the defensive against the British Pound, with prices slowly sliding toward January’s swing bottom below the 0.82 figure. The pair is now sitting at near-term support, marked by the 38.2% Fibonacci expansion at 0.8191, arguing against chasing the move lower from risk/reward perspective. The absence of a discernible bullish reversal signal means long positions are likewise unattractive. Indeed, the mere presence of support does not guarantee that it will be respected and a further break lower is from an impossibility. As such, we will remain on the sidelines for now until something more tangible emerges.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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