EUR/GBP Technical Analysis: Buyers Target 0.79 Mark Anew
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- EUR/GBP Technical Strategy: Flat
- Euro breaks two-week range resistance, aims to challenge 0.79 vs. Pound
- Looking for short trade opportunity to sell in line with long-term down trend
The Euro resumed the push higher against the British Pound after two weeks of range-bound consolidation, with prices now aiming to challenge the monthly high. The dominant multi-year trend continues to favor the downside however, painting the upswing from mid-November 2015 lows as corrective.
A daily close above the 23.6% Fibonacci expansion at 0.7912 opens the door for a challenge of the 38.2% level at 0.8046. Alternatively, a turn below resistance-turned-support at 0.7830, the 14.6% Fib, paves the way for a test of the 0.7703-35 area (horizontal pivot, rising trend line).
Our 2016 fundamental outlook envisions continuation of the long-term EUR/GBP down trend. However, risk aversion may continue to support the Euro in the near term. Tactically speaking, an actionable short trade setup is also absent at this time. We will remain flat, waiting for an actionable opportunity to present itself.
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