EUR/GBP Technical Analysis: Rebound Stalls Below 0.79
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7816, 0.7789, 0.7745
- Resistance: 0.7880, 0.7915, 0.7950
A Euro recovery against the British Pound stalled below the 0.79 figure after hitting a two-week high. A daily close below the 14.6% Fibonacci expansion at 0.7816 exposes the 23.6% level at 0.7789. Alternatively, a turn above the 0.7860-80 area marked by the October 3 high and the 38.2% Fib retracement clears the way for a challenge of the 0.7907-15 zone bracketed by a previously broken Triangle bottom and the 50% threshold.
Positioning is conflicted at this point. On one hand, the break of falling trend line resistance set from the September 10 high argues for the upside. On the other, the dominant longer-term trend remains convincingly bearish. With that in mind, we will stand aside for now until an actionable selling opportunity presents 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.