EUR/GBP Technical Analysis: Euro Stalls Below 0.71 Figure

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Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7060, 0.6930, 0.6863
• Resistance: 0.7141, 0.7206, 0.7271

The Euro stalled after correcting downward against the British Pound having broken a trend line capping gains since early May. Near-term resistance is at 0.7141, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.7206. 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).

Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.

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