Forex: EUR/GBP Technical Analysis – Support Above 0.82 Holding
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8257 (trend line), 0.8045 (Mar 28 low)
- Resistance: 0.8302 (23.6% Fib exp.), 0.8338 (38.2% Fib exp.)
The Euro turned loweras expected against the British Pound, with prices now testing support at a rising trend line set from mid-February (now at 0.8257). A break downward on a daily closing basis initially exposes the March 28 swing low at 0.8045.The first layer of resistance is at 0.8302, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 0.8338.
Prices are too close to relevant support to justify entering short from a risk/reward perspective. On the other hand, the absence of a bullish reversal signal hints it is premature to take up the long side. We will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com