EUR/GBP Technical Analysis: April Bottom Back in Focus
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7153, 0.7052, 0.6950
- Resistance: 0.7223, 0.7280, 0.7356
The Euro sank for a third consecutive day as the British Pound continues to push upward following the outcome of the UK general election. Near-term support is at 0.7453, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7052. Alternatively, a reversal above horizontal support-turned-resistance at 0.7223 clears the way for a test of the 23.6% expansion at 0.7279.
Risk/reward considerations argue against entering short with prices in close proximity to resistance. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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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.