EUR/GBP Technical Analysis: Familiar Range Remains in Play
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7873, 0.7777, 0.7728
- Resistance: 0.7953, 0.8033, 0.8084
The Euro is stalling near the middle of the choppy trading range against the British Pound that has contained price action since mid-August. A daily close below the 0.7873-96 area marked by the July 23 low and the 23.6% Fibonacci expansion exposes the 0.7788-0.7803 zone (September 30 close, 38.2% level). Alternatively, a turn above the 14.6% Fib at 0.0.7953 clears the way for a test of range top resistance at 0.8033.
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