EUR/GBP Technical Analysis: Sellers Breach 0.72 Level
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7174, 0.7124, 0.7061
- Resistance: 0.7225, 0.7287, 0.7326
The Euro resumed its down move against the British Pound, with sellers claiming a foothold below the 0.72 figure. A daily close below the 50% Fibonacci expansion at 0.7174 exposes the 61.8% level at 0.7124. Alternatively, a move above the 38.2% Fib at 0.7225opens the door for a challenge of the 0.7271-87 area (horizontal pivot, 23.6% expansion).
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- 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.