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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7197, 0.7145, 0.7102
- Resistance: 0.7230, 0.7282, 0.7362
The Euro may be preparing to resume its down trend against the British Pound following the formation of a Bearish Engulfing candlestick pattern. Near-term support is at 0.7197, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7145. Alternatively, a reversal above the 14.6% Fib at 0.7230 clears the way for a test of the May 18 high at 0.7282.
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
