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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7955, 0.7908, 0.7833
- Resistance:0.8023, 0.8081, 0.8127
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 is at 0.8023, the 14.6% Fibonacci retracement. A daily close above this barrier targets the 0.8062-81 region, bracketed by the 23.6% level and May 23 low. Alternatively, a reversal below the 0.7955-58 area marked by the June 16 low and the 61.8% Fib expansion aims for the 76.4% level at 0.7908.
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
