EUR/GBP Technical Analysis – Cautiously Building Above 0.80
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7955, 0.7908, 0.7833
- Resistance:0.8023, 0.8062, 0.8081
The Euro is attempting to launch a rebound against the British Pound as expected after putting 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 0.7955-58 area marked by the June 16 low and the 61.8% Fib expansion targets the 76.4% level at 0.7908.
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.