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- EUR/GBP Technical Strategy: Flat
- Support: 0.8127 (falling trend line)
- Resistance:0.8190 (23.6% Fib ret.), 0.8200, 0.8230 (38.2% Fib ret.)
The Euro launched a recovery against the British Pound after finding support at a falling trend line connecting major swing lows since late January. Near-term resistance is in the 0.8190-0.8200 area, marked by the 23.6% Fibonacci retracement and reinforced by the formerly broken range floor. A break above that on daily closing basis exposes the 38.2% level at 0.8230. Trend line support is now at 0.8127.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal warns against taking up the short side. With that in mind, we will continue to wait on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com