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EUR/GBP Technical Analysis – Resistance Above 0.80 Holding

EUR/GBP Technical Analysis – Resistance Above 0.80 Holding

Ilya Spivak, Head Strategist, APAC

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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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EUR/GBP Technical Analysis – Resistance Above 0.80 Holding

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.

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