Forex: EUR/GBP Technical Analysis – Struggling at 0.83 Figure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.8255 (14.6% Fib exp.), 0.8167-87 (Jan 22, 31 swing lows)
- Resistance: 0.8291-0.8309 (23.6% Fib ret., minor trend line.), 0.8364 (major trend line)
The Euro is struggling to extend gain versus the British Pound near the 0.83 figure. Resistance is in the 0.8291-0.8309 area, marked by a falling trend line set from December and the 23.6% Fibonacci retracement, exposes. A daily close above this barrier exposes a longer-term trend line set from August, now at 0.8364. Alternatively, a turn below support at 0.8255, the 14.6% Fib expansion, targets recent swing lows in the 0.8167-87 area.
Risk/reward considerations argue against entering a position at current levels with prices wedged between relevant up- and down-side barriers. Tactically, an actionable trade trigger is also absent. We will continue to monitor price activity from the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com