EUR/GBP Technical Analysis: Euro Rejected at Range Top
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7941, 0.7889, 0.7864
- Resistance: 0.8033, 0.8074, 0.8136
The Euro recoiled from familiar resistance above the 0.83 against the British Pound, prices sinking back to the middle of a three-month range. Near-term support is at 0.7941, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the range floor at 0.7889. Alternatively, a reversal above range resistance at 0.8033 clears the way for a challenge of the 38.2% Fib retracement at 0.8074.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.