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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7889, 0.7834, 0.7772
- Resistance: 0.8033, 0.8074, 0.8136
The Euro is attempting to claw its way back above the 0.80 figure having found support above July’s swing bottom. A daily close above the 0.8013-33 area marked by a formerly broken rising trend line and the June 25 high exposes the 38.2% Fibonacci retracement at 0.8074. Alternatively, a turn below range support at 0.7889 opens the door for a test of the 38.2% Fib expansion at 0.7834.
Risk/reward considerations argue against entering long with prices pushing up against resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. 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
