EUR/GBP Technical Analysis: Pound Trying to Retake Initiative
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7917, 0.7882, 0.7857
- Resistance: 0.7976, 0.8005, 8033
The Euro pulled back after rising as expected against the British Pound, with prices now flirting with cracking near-term uptrend support. A daily close below rising channel support at 0.7917 exposes a recently broken falling channel top at 0.7882. Alternatively, a turn above rising channel top resistance at 0.7976 clears the way for a test of a Triangle pattern’s upper boundary at 0.8005.
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