Forex: EUR/GBP Technical Analysis – Euro Attempting a Recovery
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8254 (trend line), 0.8045 (Mar 28 low)
- Resistance: 0.8302 (23.6% Fib exp.), 0.8338 (38.2% Fib exp.)
The Euro began to recover against the British Pound having found support at a rising trend line set from mid-February. Initial resistance is at 0.8302, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 0.8338. Trend line support now at 0.8254, with added reinforcement offered by the March 28 swing low at 0.8045.
Risk/reward considerations argue against entering long while prices trade so close to relevant resistance. On the other hand, a short position lacks an actionable downward reversal signal to suggest that resistance will hold. As such, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com