EUR/GBP Technical Analysis: Resistance Now Above 0.72
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7155, 0.7117, 0.7055
- Resistance: 0.7218, 0.7268, 0.7319
The Euro advanced against the British Pound as expected after prices produced a Bullish Engulfing candlestick pattern. A daily close above the 38.2% Fibonacci retracementat 0.7218 exposes the 50% level at 0.7268. Alternatively, a turn below the 23.6% Fib at 0.7155 opens the door for a challenge of the 14.6% retracement at 0.7117.
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.