EUR/GBP Technical Analysis: 3-Week Trend Support in Focus
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7937, 0.7920, 0.7872
- Resistance:0.7997, 0.8074, 0.8136
The Euro moved higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A daily close above resistance at 0.7997, the 23.6% Fibonacci retracement, exposes the 38.2% level at 0.8074. Alternatively, a push below trend line support at 0.7937 clears the way for a challenge of the 14.6% Fib expansion at 0.7920.
We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.
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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.