Forex: EUR/GBP Technical Analysis – Resistance Below 0.84 Held
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8307 (trend line)
- Resistance:0.8348 (Jan 13 high), 0.8390 (23.6% Fib exp.)
The Euro is stalling at near-term resistance at 0.8348, the January 13 high, after producing a significant breakout against the British Pound. A continued push higher targets the 38.2% Fibonacci retracement at 0.8390. Falling trend line resistance-turned-support begins at 0.8307.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective at this point. Meanwhile, an indecision candle on the latest daily bar may precede a pullback but could just as well amount to nothing more than a pause in the advance. This warns against attempting to get short for now and we will continue to stand aside.
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.