To receive Ilya’s analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.7864, 0.7802, 0.7740
- Resistance: 0.7903, 0.7941, 0.7988
The Euro may be on the verge of resuming its long-standing down trend against the British Pound as prices test below July’s swing bottom. Near-term support is in the 0.7864-73-area, marked by the July 23 low and the 38.2% Fibonacci expansion.A break below that on a daily closing basis exposes the 50% level at 0.7802. Alternatively, a reversal above triangle floor support-turned-resistance at 0.7903 clears the way for a challenge of the 23.6% Fib at 0.7941.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com