EUR/GBP Technical Analysis: 3-Month Resistance Pressured
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.7060, 0.6930, 0.6874
- Resistance: 0.7097, 0.7141, 0.7206
The Euro paused to consolidate after testing the resistance capping gains since early May against the British Pound. A daily close above falling trend line resistance at 0.7097 exposes the 38.2% Fibonacci retracement at 0.7141. Alternatively, a turn below the 23.6% level at 0.7060 opens the door for a challenge of the 0.6930-50 area (July 17 and August 5 lows).
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.