EUR/GBP Technical Analysis: 4-Month Down Trend Broken
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7950, 0.7914-24, 0.7873
- Resistance:0.7997, 0.8074, 0.8136
The Euro launched upward against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7997, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8074. Alternatively, a reversal back below 0.7950, the 14.6% Fib, clears the way for a challenge of resistance-turned-support in the 0.7914-24 area.
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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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.