EUR/GBP Technical Analysis: A Top in Place Above 0.87?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Shooting Star candlestick hints Euro may be set to fall vs. British Pound
- Confirmation of topping, trend reversal conspicuously absent for now
The Euro put in a Shooting Star candlestick at chart resistance against the British Pound, pointing to indecision that may precede a reversal downward. Importantly, the setup is not indicative sufficiently indicative to be an actionable trade signal without follow-on confirmation.
Near-term support is at 0.8554, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a retest of a double bottom at 0.8334. Alternatively, a clear-cut break above the 23.6% Fib at 0.8707 exposes the 0.8881-0.8956 area (support-turned-resistance, 38.2% expansion).
Besides the absence of confirmation, the near-term EUR/GBP trend continues to be defined by a series of higher highs and lows. While this may prove to be corrective in the context of a larger down move, a concrete technical reason to say as much has yet to emerge. As such, waiting on the sidelines seems prudent for now.
Why do some DailyFX analysts see EUR/GBP as a top trade idea in 2017? Find out here!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.