EUR/GBP Technical Analysis: Euro Snaps Losing Streak
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7654, 0.7594, 0.7540
- Resistance: 0.7691, 0.7765, 0.7800
The Euro snapped an eight-day losing streak against the British Pound, producing the largest advance in three weeks. Near-term resistance is at 0.7691, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7751-65 area marked by the 38.2% level and September 30 low. Alternatively, a reversal below the 14.6% Fib at 0.7654 clears the way for a test of the January 16 low at 0.7594.
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.