EUR/GBP Technical Analysis: Euro Recovery Accelerates

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7187, 0.7140, 0.7062
• Resistance: 0.7235, 0.7293, 0.7388

The Euro launched higher out of consolidation, advancing to the highest level in a month against the British Pound. Near-term resistance is at 0.7235, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 0.7293. Alternatively, a move below the 50% Fib at 0.7187 clears the way for a test of the 38.2% retracement at 0.7140.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com