EUR/GBP Technical Analysis – Narrow Range Still Holding
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7978, 0.7950, 0.7927
- Resistance:0.8023, 0.8062, 0.8081
The Euro may be on track to launch a rebound against the British Pound after prices put in a bullish Piercing Line candlestick pattern. Initial resistance comes in at 0.8023, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.8062. Alternatively, a drop through the 23.6% Fib expansion at 0.7978 targets the June 16 low at 0.7958, followed by the 38.2% level at 0.7950.
The ECB is shaping up to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major currency counterparts. With that in mind, we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity
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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.