EUR/GBP Technical Analysis: Euro Drops Most in 2 Weeks
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7803, 0.7765, 0.7728
- Resistance: 0.7953, 0.8033, 0.8084
The Euro renewed its push downward against the British Pound, issuing the largest daily decline in two weeks. A daily close below the 0.7803-20 area marked by a rising trend line and the 38.2% Fibonacci expansion exposes the September 30 low at 0.7765. Alternatively, a turn above the 23.6% Fib at 0.7896 clears the way for a test of the 14.6% expansion at 0.7953.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.