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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7345, 0.7302, 0.7258
- Resistance: 0.7399, 0.7487, 0.7574
The Euro snapped a four-day winning streak against the British Pound after bouncing as expected after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is in the 0.7384-99 area (March 25 high, 76.4% Fibonacci expansion), with a break above that on a daily closing basis exposing the 100% level at 0.7487. Alternatively, a reversal below the 61.8% Fib at 0.7345 clears the way for a test of the 50% expansion at 0.7302.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
