EUR/GBP Technical Analysis – Support Below 0.81 Pressured
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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 has moved lower to retest the May swing bottom below the 0.81 figure against the British Pound. Support is bolstered by the 23.6% Fibonacci expansion at 0.8076, with a break below that on a daily closing basis targeting the 38.2% level at 0.8030. The first layer of resistance is at 0.8105, the 14.6% Fib. A push above that opens the door for a challenge of the May 29 high at 0.8152.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, taking up the long side seems premature absent a defined bullish reversal signal. We will 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.