EUR/GBP Technical Analysis: Treading Water Above 0.70
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7074, 0.7045, 0.6987
- Resistance: 0.7140, 0.7187, 0.7235
The Euro is in consolidation mode having returned to levels prevailing ahead of this week’s dramatic opening gap and subsequent reversal. A daily close above the 38.2% Fibonacci retracement at 0.7140 exposes the 50% level at 0.7187. Alternatively, a move below the 0.7074-81 area (23.6% Fib, trend line) opens the door for a challenge of the 14.6% retracement at 0.7045.
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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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.