EUR/GBP Technical Analysis: Euro Erases Post-ECB Losses
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- 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.
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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.