To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Support: 0.8165-72 (38.2% Fib exp., double bottom), 0.8157 (channel floor), 0.8093 (50% Fib exp.)
- Resistance: 0.8243 (23.6% Fib ret.), 0.8273 (38.2% Fib ret.)
The Euro turned sharply lower against the British Pound, sinking to the weakest level in nearly three months. Prices are testing support at 0.8265-73, marked by a double bottom dating back to the beginning of the year and the 38.2% Fibonacci expansion. Breaking below this barrier and a falling channel bottom at 0.8157 clears the way for a challenge of the 50% level at 0.8093. Alternatively, a reversal back above the 0.82 figure aims for the channel top at 0.8231.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com