EUR/GBP Technical Analysis: Hints at Upswing Remain

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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.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com