EUR/GBP Technical Analysis: Cautiously Inching Upward
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7936, 0.7913, 0.7885
- Resistance:0.7970, 0.8005, 0.8033
The Euro is edging higher against the British Pound as expected after putting in 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 continue to monitor the upswing for opportunities to enter short.
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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.