EUR/GBP Technical Analysis: Waiting to Re-Establish Short
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7813, 0.7787, 0.7765
- Resistance: 0.7866, 0.7891, 0.7926
The Euro has stalled against the British Pound after retesting support-turned-resistance at the bottom of a recently broken Triangle chart pattern. Near-term resistance is in the 0.7856-66 area, marked by the 38.2% Fibonacci retracement and the Triangle floor, with a break above that on a daily closing basis exposing the 50% level at 0.7891. Alternatively, a reversal below the 14.6% Fib expansion at 0.7831 opens the door for a challenge of the 23.6% threshold at 0.7804.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling 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.