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EUR/GBP Technical Strategy: Flat
- Euro struggling to make lasting headway against the British Pound
- Overall technical positioning continues to hint at upward trend bias
- Confirmation needed on daily close above Falling Wedge pattern top
The Euro has struggled to make lasting headway against the British Pound but overall technical positing continues to point in favor of the upside. A seemingly clear Falling Wedge chart formation carries bullish implications, hinting the uptrend dating back to April 2017 may soon resume.
Defining resistance comes in at 0.8924 (Wedge top, 23.6% Fibonacci retracement), with daily close above that paving the way for a test of the 50% level at 0.8997. Alternatively, a reversal back below the 0.8795-0.8806 area exposes the 0.8674-87 zone (January 25 low, 38.2% Fib expansion).
An actionable trade setup seems to be absent. On one hand, prices are too close to resistance to justify a long trade from a risk/reward perspective. On the other, the absence of a defined bearish reversal signal and the tone of overall positioning argues against getting short. Standing aside seems best for now
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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