EUR/GBP Technical Analysis – Inching Toward 0.82 Figure
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8204-10 (Pitchfork bottom, 61.8% Fib exp.), 0.8180 (76.4% Fib exp.)
- Resistance: 0.8224 50% Fib exp.), 0.8244 (38.2% Fib exp.)
The Euro continues to move lower against the British Pound, with prices sinking to a seven-week low. Near-term support is in the 0.8204-10 area, marked by an Andrew’s Pitchfork bottom and the 61.8% Fibonacci expansion. A break downward initially aims for the 76.4% Fib at 0.8180. Alternatively, a reversal above resistance at 0.8224, the 50% level, targets the 38.2% expansion at 0.8244.
Risk/reward considerations argue against taking a short position with prices trading so close to relevant support.We will remain flat for the time being, waiting for a more attractive setup to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com