EUR/GBP Technical Analysis: Euro Extends to 2-Week High
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7927, 0.7897, 0.7853
- Resistance: 0.7956, 0.7985, 0.8012
The Euro moved higher against the British Pound as expected after the pair produced a bullish Piercing Line candlestick pattern. A daily close above the 50% Fibonacci expansionat 0.7956 exposes the 61.8% level at 0.7985. Alternatively, a turn below the 38.2% Fib at 0.7927 opens the door for a challenge falling channel top resistance-turned-support at 0.7897.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.