EUR/GBP Technical Analysis: Euro Recovery Hinted Ahead
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7361, 0.7290, 0.7219
- Resistance: 0.7449, 0.7503, 0.7591
The Euro may be preparing to turn higher against the British Pound after prices completed a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7449, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 14.6% level at 0.7503. Alternatively, a push below the 38.2% Fib at 0.7361clears the way for a challenge of the 50% expansion at 0.7290.
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