EUR/GBP Technical Analysis: Euro Reclaims 0.70 Figure
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- EUR/GBP Technical Strategy: Flat
- Support: 0.6985, 0.6930, 0.6876
- Resistance: 0.7051, 0.7116, 0.7159
The Euro is attempting to recover against the British Pound having found interim support after declining as expected. A daily close below the 38.2% Fibonacci expansion at 0.6985 exposes the 50% level at 0.6930. Alternatively, a reversal back above the 23.6% Fib at 0.7051 opens the door for a challenge of trend line resistance at 0.7116.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com