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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7649, 0.7580, 0.7511
- Resistance: 0.7692, 0.7727, 0.7761
The Euro is accelerating downward having turned lower against the British Pound as expected after forming a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7649, the 76.4% Fibonacci expansion, with break below that on a daily closing basis exposing the 100% level at 0.7649. Alternatively, a reversal above the 61.8% Fib at 0.7692 opens the door for a challenge of the 50% expansion at 0.7727.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
