Forex: EUR/GBP Technical Analysis – Six-Month Trend Targeted
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8309 (23.6% Fib ret.), 0.8255 (14.6% Fib ret.)
- Resistance: 0.8354 (trend line), 0.8397 (38.2% Fib ret.)
The Euro continues to edge higher against the British Pound, with prices nearing trend, defining resistance at a falling trend line set from August 2013 (now at 0.8354). A break above this barrier on daily closing basis initially exposes the 38.2% Fibonacci retracement at 0.8397. Alternatively, a reversal below the 23.6% level at 0.8309 aims for the 14.6% Fib at 0.8255.
An actionable trade setup seems absent at the moment. Entering long in defiance of trend resistance seems premature absent a clear-cut breakout. On the other hand, positioning on the short side presumes a downward reversal without adequate confirmation. We remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com