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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7929, 0.7864, 0.7812
- Resistance:0.7968, 0.8081, 0.8134
The Euro looks set to renew its declined against the British Pound after a period consolidation around the 0.80 figure. A break of support at 0.7968, the 14.6% Fibonacci expansion, has exposed the 23.6% level at 0.7929. A daily close below this barrier targets the 38.2% Fib at 0.7864. Alternatively, a reversal back above 0.7968 clears the way for a test of the June 25 high at 0.8033.
While entering short is very tempting from a purely technical perspective, we will tactically opt to stand aside as the ECB rate decision looms ahead. We will continue to stand aside, waiting for event risk to pass before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
