EUR/GBP Technical Analysis – Digesting Losses Below 0.80
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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 moved into consolidation mode having found tentative support below the 0.80 figure against the British Pound. Near-term support is marked by the 61.8% Fibonacci expansionat 0.7955, with a break below that on a daily closing basis exposing the 76.4% level at 0.7908. Alternatively, a move back above the 50% Fib at 0.8030 clears the way for a challenge of the 38.2% expansion 0.8030.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at an inherent disadvantage against its G10 counterparts. As such, we will opt not pursue buying opportunities, looking to any corrective gains for an opening to enter short as 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.