EUR/GBP Technical Analysis: Euro Soars Most in 8 Months
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7950, 0.7994, 0.8033
- Resistance: 0.7915, 0.7873, 0.7836
The Euro rallied the most in eight months against the British Pound, claiming a foothold above the 0.79 figure. A daily close above the 61.8% Fibonacci retracement at 0.7950 exposes the 76.4% level at 0.7994. Alternatively, a reversal turn back below the 50% Fib at 0.7915 clears the way for a test of the 0.7873-80area markedby the July 23 low and the 38.2% retracement.
We entered short EURGBP at 0.7864. The trade has now been stopped out on a daily close above the 0.79 figure. From here, prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain flat, waiting for a more compelling opportunity to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com