EUR/GBP Technical Analysis: Trying to Break Lower Anew

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7074, 0.7045, 0.6987
• Resistance: 0.7140, 0.7187, 0.7235

The Euro gapped down below trend line support against the British Pound but confirmation of a break remains absent for now. A daily close above the 38.2% Fibonacci retracement at 0.7140 exposes the 50% level at 0.7187. Alternatively, a move below the 0.7072-81 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