EUR/GBP Technical Analysis: Bounce Stalls at Triangle Line
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7813, 0.7787, 0.7765
- Resistance: 0.7823, 0.7856, 0.7891
The Euro stalled after issuing the largest daily advance in nearly three months against the British Pound. Near-term Triangle floor support-turned-resistance is at 0.7823, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.7856. Alternatively, a reversal below the 23.6% level at 0.7813 opens the door for a challenge of the 14.6% Fib at 0.7787.
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.