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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7225, 0.7174, 0.7124
- Resistance: 0.7287, 0.7326, 0.7388
The Euro gapped below support against the British Pound but closed back above the level, putting downside follow-through in question. Near-term support is at 0.7225, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7174. Alternatively, a push above the 23.6% Fib at 0.7287clears the way for a test of the 14.6% threshold at 0.7326.
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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
