EUR/GBP Technical Analysis – Seesawing Around 0.80 Level
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7955, 0.7908, 0.7833
- Resistance:0.8023, 0.8081, 0.8127
The Euro is struggling to build higher against the British Pound 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 seems to be the most dovish of the major central banks, putting the Euro at structural disadvantage against its G10 FX counterparts. With that in mind, we will opt not to pursue a long position and wait for a 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.