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EUR/GBP Technical Analysis: Rebound Pauses Below 0.71

EUR/GBP Technical Analysis: Rebound Pauses Below 0.71

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro Rebound Stalls Below 0.71 Figure vs. British Pound After Trend Line Break
  • Waiting for Clear Signs Rebound Over to Enter Short in Line with Long-Term Trend

The Euro paused to consolidate below the 0.71 figure against the British Pound but overall positioning continues to suggest an upside correction is in progress. Prices pushed upward as expected having formed a bullish Morning Star candlestick pattern, clearing falling trend resistance set from mid-October.

A daily close above the 14.6% Fibonacci retracementat 0.7057opens the door for a test of 23.6% level at 0.7103. Alternatively, a drop below the November 18 low at 0.6982 clears the way for a challenge of the July 17 bottom at 0.6930.

The prevailing long-term EUR/GBP trend continues to look bearish, making any on-coming advance from current levels appear corrective. With that in mind, we will remain on the sidelines until the recovery fizzles and offers a selling opportunity in line with the dominant trajectory.

Losing Money Trading Forex? This Might Be Why.

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