EUR/GBP Technical Analysis: March Bottom in the Crosshairs

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7060, 0.7007, 0.6922
• Resistance: 0.7102, 0.7145, 0.7197

The Euro declined against the British Pound as expected after putting in a Bearish Engulfing candlestick pattern. A daily close below the 61.8% Fibonacci expansion at 0.7060 exposes the 76.4% level at 0.7007. Alternatively, a turn above the 50% Fib at 0.7102 opens the door for a challenge of the 38.2% expansion at 0.7145.

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