EUR/GBP Technical Analysis: Range-Bound Trade Continues
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.7941, 0.7899, 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 a rising channel floor at 0.7899. 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.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.