EUR/GBP Technical Analysis – Euro Finds Channel Support
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8074 (channel floor), 0.8056 (100% Fib exp.)
- Resistance:0.8104 (76.4% Fib exp.), 0.8133 (61.8% Fib exp.)
The Euro has found support at the bottom of a falling channel support set from late April, with back-to-back indecision candles warning of a bounce ahead. The first layer of resistance is at 0.8104, the 76.4% Fibonacci expansion. A daily close above this barrier targets the 61.8% Fib at 0.8133 (a level is bolstered by the channel top). Alternatively, a reversal beneath channel support (now at 0.8074) exposes the 100% Fib at 0.8056.
The available trading range is too narrow to allow for a short trade from a risk/reward perspective. On balance, we remain on the sidelines for the time being.
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.