EUR/GBP Technical Analysis: Familiar Range Top Under Fire
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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 rose for a third consecutive day against the British Pound, with prices narrowly hitting a three-month high. A daily close above the June 25 high at 0.8033 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 sitting just a hair below 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, waiting for a more actionable trade setup to present itself.
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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.