EUR/GBP Technical Analysis: Resistance Sub-0.74 at Risk
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7239, 0.7149, 0.7005
- Resistance: 0.7392, 0.7509, 0.7627
The Euro has recovered to the top of its recent range below the 0.74 figure against the British Pound. A daily close above the 0.7384-92 area (38.2% Fibonacci retracement, March 25 high) exposes the 50% level at 0.7509. Alternatively a turn below the 14.6% Fib expansionat 0.7239 opens the door for a test of the 23.6% threshold at 0.7149.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.