To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7361, 0.7290, 0.7219
- Resistance: 0.7407, 0.7449, 0.7503
The Euro continues to tread water above the 0.73 figure against the British Pound but positive RSI divergence warns a bounce may be ahead. Near-term trend line resistance is at 0.7407, with a break above that on a daily closing basis exposing the 23.6% Fibonacci expansion at 0.7449. 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com