EUR/GBP Technical Analysis – Sideways Trade Continues
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8104 (76.4% Fib exp), 0.8081 (May 23 low)
- Resistance:0.8133 (61.8% Fib exp.), 0.8157 (50% Fib exp.)
The Euro is struggling to maintain upward momentum against the British Pound after taking out falling channel in play since late April. Near-term resistance is marked by the 61.8% Fibonacci expansion at 0.8133, with a daily close above that clearing the way for a test of the 50% level at 0.8157. Support is at 0.8104, the 76.4% Fib. A reversal below that exposes the May 23 low at 0.8081.
The available trading range is too narrow to justify a trade on the long or the short side from a risk/reward perspective. With that in mind, we will remain on the sidelines and wait for a more attractive opportunity to present itself.
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.