EUR/GBP Technical Analysis – May Low Under Pressure
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8076-81 (May 23 low, 23.6% Fib exp.), 0.8030 (38.2% Fib exp.)
- Resistance:0.8105 (14.6% Fib exp.), 0.8152 (May 29 high)
The Euro is under pressure once again, with prices inching toward a retest of the May swing bottom against the British Pound (0.8081). This barrier is reinforced by the 23.6% Fibonacci expansion at 0.8076, with a daily close beneath that exposing the 38.2% level at 0.8030. Near-term resistance is at 0.8105, the 14.6% Fib. A reversal back above that clears the way for a retest of the May 29 high at 0.8152.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. Wewill 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.