EUR/GBP Technical Analysis: Waiting to Confirm Rebound
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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 carving out a bottom against the British Pound after prices put in a bullish Morning Star candlestick pattern. Positive RSI divergence bolsters the case for an upside scenario. A daily close above the 23.6% Fibonacci expansionat 0.7449 exposes the 14.6% level at 0.7503. Alternatively, a reversal below the 38.2% Fib at 0.7361opens the door for a test of the 50% expansion at 0.7290.
Positioning is inconclusive at this point.While bullish reversal cues remain valid from a technical perspective, follow-through has been conspicuously absent. With that in mind, we will remain on the sidelines for the time being until a more actionable opportunity to presents itself.
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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.