EUR/GBP Technical Analysis: Candle Setup Hints at Bounce
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7809, 0.7751, 0.7662
- Resistance: 0.7899, 0.7954, 0.8033
The Euro may be preparing to turn higher against the British Pound after prices put in a bullish Piercing Line candlestick pattern. Near-term resistance is at 0.7899, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing support-turned-resistance at 0.7954. Alternatively, a reversal below the 23.6% level at 0.7809 opens the door for a challenge of the 0.7751-65 area marked by the July 23 2012 and September 30 2014 lows.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
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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.