EUR/GBP Technical Analysis: Digesting Gains Below 0.73
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7216, 0.7139, 0.7013
- Resistance: 0.7342, 0.7443, 0.7545
The Euro advanced against the British Pound as expected after putting in a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fibonacci retracementat 0.7342 exposes the 50% level at 0.7443. Alternatively, a turn below the 23.6% Fib at 0.7216opens the door for a test of 0.7114-39 area (trend line resistance-turned-support, 14.6% retracement).
Our long-term outlook envisions Euro weakness. With that in mind, we will treat any on-coming upswing as corrective and look to enter short once signs of a renewed turn lower emerge. In the meantime, we will remain on the sidelines.
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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.