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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7342, 0.7216, 0.7139
- Resistance: 0.7443, 0.7545, 0.7670
The Euro advanced against the British Pound as expected after putting in a bullish Morning Star candlestick pattern. A daily close above the 50% Fibonacci retracement at 0.7443 exposes the 61.8% level at 0.7545. Alternatively, a reversal below the 38.2% Fib at 0.7342opens the door for a test of the 23.6% retracement at 0.7216.
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
