Sunday, May 24, 2015

EUR/GBP Technical Analysis: Four-Day Loss Streak Broken




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Talking Points:



  • EUR/GBP Technical Strategy: Flat


  • Support: 0.7052, 0.6950, 0.6825


  • Resistance: 0.7153, 0.7279, 0.7356


The Euro paused to consolidate losses having turned lower against the British Pound as expected having produced a Bearish Engulfing candlestick pattern. Near-term support is at 0.7052, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.6950. Alternatively, a reversal above the 38.2% Fib at 0.7153 clears the way for a test of the 23.6% expansion at 0.7279.



Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.



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EUR/GBP Technical Analysis: Four-Day Loss Streak Broken


Daily Chart – Created Using FXCM Marketscope



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





EUR/GBP Technical Analysis: Four-Day Loss Streak Broken

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