EUR/GBP Technical Analysis: Rally Falters Below 0.76 Mark
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7503, 0.7591, 0.7671
- Resistance: 0.7449, 0.7361, 0.7290
The Euro recoiled downward after finding resistance below the 0.76 figure against the British Pound having attempted a bounce as expected. A daily close below the 23.6% Fibonacci expansion at 0.7449 exposes the 38.2% level at 0.7361. Alternatively, a turn above the 14.6% Fib at 0.7503 opens the door for a challenge of the February 3 high at 0.7591.
An actionable trade setup is absent at this point. On one hand, prices are too close to support to enter short from a risk/reward perspective. On the other, our fundamental outlook calls for broad-based Euro weakness and we prefer to treat any oncoming gains as an opportunity to short rather than a stand-alone long-trade setup. With that in mind, we remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com