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- EUR/GBP Technical Strategy: Flat
- Euro struggling to make good on last week’s upside resistance break
- Fundamentals favor bearish bias but actionable trade setup still absent
The Euro is struggling to make good on last week’s upward break against the British Pound, with prices still mired within a choppy range carved out since late September. Fundamental forces may move against the single currency and in favor of its UK counterpart as the calendar turns to 2018 however.
Near-term resistance remains at 0.8925, the 38.2% Fibonacci retracement, with a daily close above that paving the way for a challenge of the 0.8998-0.9007 area (50% Fib, range top). Alternatively, a turn back below the 23.6% retracement at 0.8835 exposes the 0.8733-46 zone (September 27, November 1 lows) once again.
Current positioning does not seem to offer an actionable trading opportunity. Indeed, prices have drifted without much conviction since breaking above 0.8835 last week. This argues against committing to a trade for now until a more compelling near-term chart setup presents itself.