Forex: EUR/GBP Technical Analysis – Support Above 0.82 Eyed
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8212 (23.6% Fib exp.), 0.8167 (38.2% Fib exp.)
- Resistance: 0.8283-0.8306 (trend line cluster), 0.8349 (Feb 6 high)
The Euro has turned lower against the British Pound anew after putting in a bearish Dark Cloud Cover candlestick pattern below trend line cluster resistance (now in the 0.8278-0.8302 area). A daily close below support at 0.8212, the 23.6% Fibonacci expansion, exposes the 38.2% level at 0.8167. Alternatively, a move above 0.8302 targets the February 6 high at 0.8349.
Assuming an invalidation point at 0.8285, the February 24 high, maintaining a risk/reward ratio of at least 1:1 would require a short entry price no lower than 0.8249. On this basis, the pair is trading too close to near-term support to justify selling at present. As such, 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