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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7491, 0.7403, 0.7330
- Resistance: 0.7545, 0.7633, 0.7704
The Euro is attempting to build higher against the British Pound as expected after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.7545, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.7633. Alternatively, a reversal below the 14.6% Fib at 0.7491 clears the way for a test of the January 26 low at 0.7403.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
