EUR/GBP Technical Analysis – Channel Resistance at Risk
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8056-60 (100% Fib exp., channel floor)
- Resistance:0.8104 (76.4% Fib exp.), 0.8121 (channel top), 0.8133 (61.8% Fib exp.)
The Euro has found support at the bottom of a falling channel support set from late April and is attempting to mound a recovery against the British Pound. The first layer of resistance is at 0.8104, the 76.4% Fibonacci expansion. A daily close above this barrier targets the top of a falling channel set from late April (0.8121), followed by the 61.8% Fib at 0.8133. Support lines in the 0.8056-60 area, marked by the channel bottom and the 100% Fib.
Prices are too close to 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 remain flat 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.