To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7889, 0.7834, 0.7772
- Resistance: 0.8033, 0.8074, 0.8136
The Euro has erased losses sustained in the wake of the ECB rate decision against the British Pound, returning to a familiar range top. Near-term resistance is in the 0.8016-33 area, marked by a formerly broken rising trend line and the June 25 high, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.8074. Alternatively, a reversal below range support at 0.7889 clears the way for a challenge of the 38.2% Fib expansion at 0.7834.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
