EUR/GBP Technical Analysis: Targeting 5-Month Resistance
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- EUR/GBP Technical Strategy: Flat
- Support: 0.8004, 0.7985, 0.7954
- Resistance: 0.8035, 0.8060, 0.8086
The Euro resumed its aggressive ascent against the British Pound, with prices now poised to challenge an upside barrier capping the upside since late June. A daily close below the 0.8033-35 area marked by the aforementioned ceiling and the 38.2% Fibonacci expansionexposes the 50% level at 0.8060. Alternatively, a reversal below the 23.6% Fib at 0.8004 clears the way for a test of the 14.6% expansion at 0.7985.
The available trading range is too narrow to allow for a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for the time being, waiting for a more compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com