EUR/GBP Technical Analysis: Waiting to Re-Establish Short
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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 is stalling at range resistance below the 0.74 figure against the British Pound once again, with a pair Shooting Star candles hinting at topping. Near-term support is at 0.7239, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.7149. Alternatively, a reversal above the 0.7384-92 area (38.2% Fib retracement, March 25 high) clears the way for a challenge of the 50% threshold at 0.7509.
Shooting Star candles are not a sufficiently significant signal to enter short, pointing to indecision rather than bearish reversal. With that in mind, we will remain flat for now, waiting for confirmation of a top in place to trigger a position.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com