EUR/GBP Technical Analysis: Pausing to Digest Decline
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7124, 0.7061, 0.6961
- Resistance: 0.7174, 0.7225, 0.7287
The Euro paused to digest losses after declining to the lowest level in two weeksagainst the British Pound. A daily close below the 61.8% Fibonacci expansion at 0.7124 exposes the 76.4% level at 0.7061. Alternatively, a move above the 50% Fib at 0.7174opens the door for a challenge of the 38.2% threshold at 0.7225.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.