EUR/GBP Technical Analysis: Rally Extends for Sixth Day
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7319, 0.7268, 0.7218
- Resistance: 0.7381, 0.7482, 0.7556
The Euro moved higher against the British Pound as expected after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.7381, the 76.4% Fibonacci retracement, with a break above that on a daily closing basis exposing the May 7 high at 0.7482. Alternatively, a reversal below the 61.8% Fib at 0.7319 clears the way for a test of the 50% retracement at 0.7268.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.