EUR/GBP Technical Analysis: Probing Above 0.74 Figure
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7345, 0.7302, 0.7258
- Resistance: 0.7399, 0.7487, 0.7574
The Euro continued to push higher against the British Pound having turned upward as expected after forming a bullish Piercing Line candlestick pattern. A daily close above the 0.7384-99 area (March 25 high, 76.4% Fibonacci expansion) exposes the 100% level at 0.7487. Alternatively, a turn below the 61.8% Fib at 0.7345 opens the door for a challenge of the 50% expansion at 0.7302.
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