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Forex: EUR/GBP Technical Analysis – Euro Breaks Key Resistance

Forex: EUR/GBP Technical Analysis – Euro Breaks Key Resistance

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8310 (trend line)
  • Resistance:0.8348 (Jan 13 high), 0.8390 (23.6% Fib exp.)

The Euro looks poised to extend its advance against the British Pound after prices pushed through a cluster of falling trend lines initiated from August 2013. Near-term resistance is at 0.8348, the January 13 high, with a push above that targeting the 38.2% Fibonacci retracement at 0.8390. Trend line resistance-turned-support begins at 0.8310.

We opted not to attempt a short position having noticed positive RSI divergence, a decision validated by today’s breakout. The pair is now too close to relevant resistance to justify a long position on from a risk/reward perspective. A short trade is no less unattractive without a viable downward reversal signal however. We remain flat for now.

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dailyclassics_eur-chf_body_Picture_11.png, Forex: EUR/GBP Technical Analysis – Euro Breaks Key Resistance

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.

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