Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/GBP Technical Analysis: Pullback Cut Short Above 0.73

EUR/GBP Technical Analysis: Pullback Cut Short Above 0.73

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro Finds Support Above 0.73 Figure After Retreating from 5-Month High
  • Risk/Reward Parameters Argue Against Committing to Long or Short Trade

The Euro is consolidating in a choppy range near the 0.74 figure against the British Pound as prices await new direction cues.The pair pulled back after hitting a five-month high but soon found support at a rising trend line guiding the move higher since August.

A daily close above the August 24 high at 0.7421 opens the door for a challenge of the May 7 top at 0.7482. Alternatively, a push below the intersection of trend line support and the 23.6% Fibonacci retracement at 0.7322 clears the way for a test of the 38.2% level at 0.7247.

Risk/reward considerations argue against taking a trade at current levels. On one hand, prices are too close to resistance to make for an attractive long trade. On the other, the absence of a bearish reversal signal hints taking up the short side is premature. We will stand aside for now, waiting for positioning to yield a better-defined opportunity.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.