EUR/GBP Technical Analysis: Euro Bottom May Yet Hold
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7449, 0.7361, 0.7290
- Resistance: 0.7503, 0.7591, 0.7671
A sharp Euro pullback fell short of negating a Bullish Engulfing candlestick pattern, hinting an expected rebound against British Pound may yet happen. Near-term resistance is at 0.7503, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the February 3 high at 0.7591. Alternatively, a push below the 23.6% Fib at 0.7449 clears the way for a test of the 38.2% expansion at 0.7361.
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