Monday, June 2, 2014

EUR/GBP Technical Analysis ? Resistance Above 0.81 Holds Up




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Talking Points:



  • EUR/GBP Technical Strategy: Flat


  • Support: 0.8104 (76.4% Fib exp), 0.8089 (channel top)


  • Resistance:0.8133 (61.8% Fib exp.), 0.8157 (50% Fib exp.)


The Euro is struggling to maintain upward momentum against the British Pound after taking out falling channel in play since late April. Near-term resistance is marked by the 61.8% Fibonacci expansion at 0.8133, with a daily close above that clearing the way for a test of the 50% level at 0.8157. Support is at 0.8104, the 76.4% Fib. A reversal below that exposes the channel top – now recast as support – at 0.8089.



Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. Wewill remain flat for now.



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EUR/GBP Technical Analysis – Resistance Above 0.81 Holds Up


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





EUR/GBP Technical Analysis ? Resistance Above 0.81 Holds Up

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