EUR/GBP Technical Analysis: Pound Jumps to 2-Year High
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7889, 0.7861, 0.7833
- Resistance:0.7924, 0.7971, 0.8033
The Euro has renewed its downward push against the British Pound, with prices sinking to the lowest level in nearly two years. Sellers are now aiming to challenge support at 0.7889, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7861. Alternatively, a reversal back above the 23.6% Fib at 0.7924 aims for support-turned-resistance at 0.7971.
While entering short is tempting, we will tactically opt not to pursue the position. Positive RSI divergence warns of lackluster downward momentum and hints losses may be short-lived. With that in mind, we will continue to stand on the sidelines.
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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.