EUR/GBP Technical Analysis: Turn Lower Hinted Ahead
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7261, 0.7221, 0.7182
- Resistance: 0.7391, 0.7430, 0.7469
The Euro is consolidating below the 0.74 figure against the British Pound, with negative RSI divergence hinting a move lower is ahead. Near-term support is at 0.7261, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 0.7221. Alternatively, a push above the 38.2% Fib expansion at 0.7391clears the way for a test of the 50% threshold at 0.7430.
Positioning is inconclusive at this point. RSI divergence is not sufficient as a directional signal by itself without further confirmation. With that in mind, we will remain flat for now, waiting for a more compelling opportunity to present 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.