EUR/GBP Technical Analysis: Euro Rebound Hinted Ahead

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7153, 0.7052, 0.6950
• Resistance: 0.7223, 0.7279, 0.7356

The Euro may be preparing to move higher against the British Pound after forming an Inverted Hammer candlestick. A daily close above horizontal pivot support-turned-resistance at 0.7222 exposes the 23.6% Fibonacci expansion at 0.7279. Alternatively, a push below the 38.2% Fib at 0.7153 opens the door for a challenge of the 50% expansion at 0.7052.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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