EUR/GBP Technical Analysis: Euro Poised to Break Upward
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7060, 0.6930, 0.6874
- Resistance: 0.7097, 0.7141, 0.7206
The Euro is attempting to break resistance capping gains against the British Pound over the past three months. Near-term trend line resistance is at 0.7091, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.7141. Alternatively, a move below the 23.6% level at 0.7060 clears the way for a test of the 0.6930-50 area (July 17 and August 5 lows).
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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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.