EUR/GBP Technical Analysis: Candle Setup Hints at Gains
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7190, 0.7122, 0.7043
- Resistance: 0.7233, 0.7301, 0.7356
The Euro moved higher against the British Pound as expected, with a bullish Morning Star candlestick pattern now hinting at further gains ahead. A daily close above the 23.6% Fibonacci retracement at 0.7233 exposes the 38.2% Fibonacci expansion at 0.7301. Alternatively, a push below the 14.6% Fib at 0.7190 opens the door for a challenge of the May 13 low at 0.7122.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.