To receive Ilya's analysis directly via email, please SIGN UP HERE
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.
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
