EUR/GBP Technical Analysis – Stalling at Range Floor Again
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8195 (Apr 30 low), 0.8172 (double bottom)
- Resistance: 0.8243 (23.6% Fib ret.), 0.8273 (38.2% Fib ret.)
The Euro remains locked in a well-defined range above the the April 30 low at 0.8195 against the British Pound. A daily close below support initially targets a double bottom at 0.8172. Alternatively, a rebound that takes prices above range resistance at 0.8243, the 23.6% Fibonacci retracement, clears the way for a test of the 38.2% level at 0.8273.
Risk/reward considerations argue against entering short with prices squarely at support. On the other hand, the absence of a defined upside reversal signal means taking up the long side is premature. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.