EUR/GBP Technical Analysis: Eyeing Resistance at 0.73
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7233, 0.7190, 0.7122
- Resistance: 0.7301, 0.7356, 0.7412
The Euro moved higher against the British Pound as expected, with prices now taking aim at the 0.73 figure. A daily close above the 38.2% Fibonacci expansion at 0.7301 exposes the 50% level at 0.7356. Alternatively, a turn below the 23.6% Fib at 0.7233 opens the door for a challenge of the 14.6% expansion at 0.7190.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.