EUR/GBP Technical Analysis – Euro Rebound Hinted Ahead
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.7936, 0.7913, 0.7885
- Resistance:0.7970, 0.8005, 0.8033
The Euro may be setting for a corrective bounce against the British Pound after prices completed a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.7970, the 23.6% Fibonacci retracement, with a break above that on a daily closing targeting the 38.2% level at 0.8005. Alternatively, a move back below the 50% Fib expansion at 0.7936 clears the way for another challenge of the 61.8% barrier at 0.7913.
We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will for the upswing to offer short entry opportunities.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.