EUR/GBP Technical Analysis: July Bottom Under Pressure
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7864, 0.7802, 0.7740
- Resistance: 0.7903, 0.7941, 0.7988
The Euro may be on the verge of resuming its long-standing down trend against the British Pound as prices test below July’s swing bottom. Near-term support is in the 0.7864-73-area, marked by the July 23 low and the 38.2% Fibonacci expansion.A break below that on a daily closing basis exposes the 50% level at 0.7802. Alternatively, a reversal above triangle floor support-turned-resistance at 0.7903 clears the way for a challenge of the 23.6% Fib at 0.7941.
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.