EUR/GBP Technical Analysis – Resistance Above 0.80 in Focus
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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 is attempting to advance against the British Pound as expected after producing a bullish Piercing Line candlestick pattern. The first layer of resistance comes in at 0.8023, the 14.6% Fibonacci retracement. A daily close above that exposes the 23.6% level at 0.8062. Support is at 0.7978, 23.6% Fib expansion. A move below opens the door for a challenge of the June 16 low at 0.7958, followed by the 38.2% level at 0.7950.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at a broad 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.