EUR/GBP Technical Analysis: Quiet Consolidation Continues
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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 continues to tread water near levels prevailing before the sharp gap and subsequent upswing at the open of the trading week. Near-term resistance is at 0.7140, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.7187. Alternatively, a push below the 0.7071-81 area (23.6% Fib, trend line) clears the way for a test of the 14.6% retracement at 0.7045.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling 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.