EUR/GBP Technical Analysis: Euro Drops Back Below 0.80
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7973, 0.7954, 0.7935
- Resistance:0.7997, 0.8011, 0.8035
The Euro began edging higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A pullback now sees prices approaching support at 0.7973, the 38.2% Fibonacci retracement, with a daily close below that exposing the intersection of a rising trend line set from July’s lows and the 50% level at 0.7954. Alternatively, a turn above the 23.6% Fib at 0.7997 clears the way for a challenge of the 14.6% retracement at 0.8011.
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.