EUR/GBP Technical Analysis: Waiting for Euro Recovery
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7403, 0.7361, 0.7290
- Resistance: 0.7449, 0.7503, 0.7591
The Euro is digesting losses near the 0.74 figure against the British Pound, with positive RSI divergence hinting a bounce may be ahead. A daily close above the 23.6%Fibonacci expansion at 0.7449 exposes the 14.6% level at 0.7503. Alternatively, push below the January 26 low at 0.7403opens the door for a challenge of the 38.2% Fib at 0.7361.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.