Forex: EUR/GBP Technical Analysis – Waiting for Direction Cues
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8309 (23.6% Fib ret.), 0.8255 (14.6% Fib ret.)
- Resistance: 0.8351 (trend line), 0.8397 (38.2% Fib ret.)
The Euro’s push higher against the British Pound is visibly struggling to maintain momentum ahead of trend line resistance set from August 2013 (now at 0.8351). A break above the trend line on a daily closing basis targets the 38.2% Fibonacci retracement at 0.8397. Alternatively, a sustained push below 23.6% level at 0.8309 aims for the 14.6% Fib at 0.8255.
A clear-cut trade setup remains absent for now. Prices are showing little directional conviction and risk/reward considerations arguing against either a long or short position with the pair so close to relevant up- and downside technical barriers. We will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- 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.