EUR/GBP Technical Analysis: Euro Rejected at Key Resistance
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7979, 0.7943, 0.7913
- Resistance: 0.8001, 0.8035, 0.8060
The Euro retreated against the British Pound after testing a key topside barrier that has contained the upside since late June. A daily close above the 14.6% Fibonacci retracement at 0.8001 exposes the 0.8033-35 area, marked by the aforementioned ceiling and the 38.2% Fib expansion. Alternatively, a push below the 23.6% retracement at 0.7979 clears the way for a test of the 38.2% threshold at 0.7943.
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