EUR/GBP Technical Analysis: Pound Gains Most in 9 Months
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7873, 0.7842, 0.7781
- Resistance: 0.7909, 0.7940, 0.7977
The Euro accelerated downward, issuing its largest daily decline in nine months against the British Pound. Near-term support is in the 0.7873-79 area, marked by the July 23 low and the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 0.7842. Alternatively, a reversal above the 50% Fib at 0.7909 opens the door for a challenge of the 38.2% expansion at 0.7940.
Prices are wedged too tightly between near-term up- and down-side technical barriers to justify taking 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