EUR/GBP Technical Analysis – Long-Term Trend Line Retested

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8255-64 (trend line from Feb’14, 23.6% Fib exp.), 0.8300
  • Resistance: 0.8219 (trend line from Aug’13), 0.8165 (38.2% Fib exp.)

The Euro fell against the British Poundas expected, with prices clearing trend line support set from mid-February to retest former support dating back to August 2013. This level is now at 0.8219, with a break below that initially exposing the 38.2% Fibonacci expansion at 0.8165. Resistance lines up in the 0.8255-64 area – marked by the February trend line and the 23.6% level – with a break above that targeting the 0.83 figure at first.

Prices are wedged too tightly between near-term support and resistance to justify taking a position on either side of the market from a risk/reward perspective. We will continue to stand aside, looking for a more actionable setup to present itself.

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dailyclassics_eur-chf_body_Picture_11.png, EUR/GBP Technical Analysis – Long-Term Trend Line Retested

Daily Chart - Created Using FXCM Marketscope 2.0

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


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