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- EUR/GBP Technical Strategy: Flat
- Support: 0.7997, 0.7950, 0.7880
- Resistance:0.8074, 0.8136, 0.8198
The Euro moved higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A daily close above resistance at 0.8074, the 38.2% Fibonacci retracement, exposes the 50% level at 0.8136. Alternatively, a push below the 23.6% Fib at 0.7997 clears the way for a challenge of 0.7950, the intersection of the 14.6% expansion and a rising trend line set from late July.
We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com