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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.8005, 0.7982, 0.7958
- Resistance:0.8020, 0.8044, 0.8063
The Euro launched upward against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. Resistance is now at 0.8020, the 23.6% Fibonacci expansion. A break above that on a daily closing basis exposes the 38.2% level at 0.8044. Alternatively, a reversal below the 14.6% Fib at 0.8005 opens the door for a test of the August 19 low at 0.7982.
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
