EUR/GBP Technical Analysis – Pound Snaps 8-Day Win Streak
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7955 (61.8% Fib exp.), 0.7908 (76.4% Fib exp.)
- Resistance:0.7992 (50% Fib exp.), 0.8030 (38.2% Fib exp.)
The Euro has found tentative support below the 0.80 figure against the British Pound, snapping an eight-day losing streak. The first downside barrier is at 0.7955, the 61.8% Fibonacci expansion, with a daily close below that targeting the 76.4% level at 0.7908. Alternatively, a reversal above the 50% Fib at 0.8030 opens the door for a test of the 38.2% expansion 0.8030.
The ECB looks to be the most dovish of the major central banks, putting the Euro at an inherent disadvantage against its major counterparts. With that in mind, we will opt not pursue buying opportunities but rather look to any corrective gains for an opening to enter short, as we discussed in our weekly outlook.
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.