EUR/GBP Technical Analysis: Euro Attempting a Recovery
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7889, 0.7861, 0.7833
- Resistance:0.7914-24, 0.7971, 0.8033
The Euro is attempting to launch a recovery against the British Pound having found interim support below the 0.79 figure. A daily close above resistance in the 0.7914-24 area, marked by the July 7 low and the 23.6% Fibonacci expansion, opens the door for a test of support-turned-resistance at the June 13 low (0.7971). Alternatively, a reversal below support at 0.7889, the 38.2% level, clears the way for a move to the 50% level at 0.7861.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat for now.
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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.