EUR/GBP Technical Analysis: 2-Month Trend Challenged
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7145, 0.7102, 0.7060
- Resistance: 0.7197, 0.7230, 0.7282
The Euro declined against the British Pound as expected after putting in a Bearish Engulfing candlestick pattern. A daily close below the 38.2% Fibonacci expansion at 0.7145 exposes the 50% level at 0.7102. Alternatively, a turn above the 23.6% Fib at 0.7197 opens the door for a challenge of the 14.6% expansion at 0.7230.
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.