EUR/GBP Technical Analysis: Rebound Stalls Below 0.79
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7819, 0.7777, 0.7740
- Resistance: 0.7880, 0.7915, 0.7950
The Euro may turn lower anew against the British Pound following the appearance of a pair of Spinning Top candlesticks. A daily close below the October 3 low at 0.7819 exposes 0.7777, the July 2012 bottom. Alternatively, a push through the 0.7873-80 area marked by the July 23 low and the 38.2% Fibonacci retracement clears the way for a challenge of the 7909-15 zone bracketed by a previously broken triangle pattern bottom and the 50% level.
Spinning Top candles indicate indecision and do not amount to an actionable short trade signal by themselves absent confirmation. With that in mind, we will remain on the sidelines 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.