EUR/GBP Technical Analysis: A Top in Place Below 0.74?
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7222, 0.7171, 0.7121
- Resistance: 0.7284, 0.7322, 0.7385
The Euro put in a bearish Evening Star candlestick pattern, hinting a move lower against the British Pound is ahead. Near-term support is at 0.7222, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7171. Alternatively, a reversal above the 23.6% Fib at 0.7284 clears the way for a test of the 14.6% expansion at 0.7322.
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.