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EUR/GBP Technical Analysis: Struggling to Build Above 0.79

EUR/GBP Technical Analysis: Struggling to Build Above 0.79

2014-07-10 23:47:00
Ilya Spivak, Sr. Currency Strategist
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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7936, 0.7913, 0.7885
  • Resistance:0.7970, 0.8005, 0.8033

The Euro is attempting to initiate a recovery against the British Pound after putting in a Bullish Engulfing candlestick pattern. The first layer of resistance is at 0.7970, the 23.6% Fibonacci retracement. A daily close above this barrier exposes the 38.2% level at 0.8005. Alternatively, a reversal below the 50% Fib expansion at 0.7936 opens the door for a test of the 61.8% barrier at 0.7913.

The ECB looks to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major 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: Struggling to Build Above 0.79

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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