EUR/GBP Technical Analysis: Euro Spike Above 0.80 Falters
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7927, 0.7888, 0.7856
- Resistance: 0.7956, 0.7985, 0.8012
The Euro advanced against the British Pound as expected after prices put in a bullish Piercing Line candlestick pattern. Near-term resistance is at 0.7956, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 0.7985. Alternatively, a reversal below the 38.2% Fib at 0.7927 opens the door for a challenge of falling channel top resistance-turned-support at 0.7888.
Prices are wedged to closely between near-term support and resistance to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now and wait for a more attractive setup to emerge.
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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.