EUR/GBP Technical Analysis: Euro Rejected on Test of 0.80
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7951, 0.7920, 0.7895
- Resistance: 0.8002, 0.8033, 0.8069
The Euro recoiled downward after probing toward the 0.80 figure against the British Pound, snapping an aggressive three-day winning streak. Near-term resistance is at 0.8002, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing a triple top at 0.8033. Alternatively, a push below the 23.6% Fib retracement at 0.7951 opens the door for a challenge of the 38.2% threshold at 0.7920.
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 that 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