EUR/GBP Technical Analysis: Bottoming Hinted Above 0.71
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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 advanced against the British Pound as expected, with a bullish Morning Star candlestick pattern suggesting a bottom may be in place. Near-term resistance is at 0.7233, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% Fibonacci expansion at 0.7301. Alternatively, a turn below the 14.6% Fib at 0.7190 clears the way for a test of the May 13 low at 0.7122.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents 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.