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- EUR/GBP Technical Strategy: Flat
- Support: 0.8325 (23.6% Fib ret.), 0.8293 (38.2% Fib ret.)
- Resistance: 0.8377 (Mar 13 high)
Opting not to buy the Euro against the British Pound yesterday proved prudent as prices reversed lower, forming a bearish Dark Cloud Cover candlestick pattern and hinting at further weakness ahead. Initial support is at 0.8325, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.8293. Near-term resistance is at 0.8377, the March 13 high.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, a viable reversal signal arguing in favor of a long trade is absent for the time being.We will remain on the sidelines until a more actionable setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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