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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7361, 0.7290, 0.7219
- Resistance: 0.7396, 0.7449, 0.7503
The Euro continues to consolidate above the 0.73 figure against the British Pound but positive RSI divergence hints a recovery may be brewing. A daily close above trend line resistance at 0.7396 exposes the 23.6% Fibonacci expansion at 0.7449. Alternatively, a reversal below the 38.2% Fib at 0.7361opens the door for a test of the 50% expansion at 0.7290.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
