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- EUR/GBP Technical Strategy: Flat
- Support: 0.8125 (falling trend line), 0.8109 (channel floor)
- Resistance:0.8166 (channel top), 0.8190-0.8200 (23.6% Fib ret., range floor)
A brief Euro recovery has been overturned, with the British Pound securing its strongest close in 16 months against the single currency. Support lines up 0.8125, marked by a falling trend line set from late January, with a break below that exposing the bottom of a falling channel at 0.8109. Alternatively, reversing a daily close above the channel top at 0.8166 clears the way for a challenge of the 0.8190-0.8200 area, marked by the 23.6% Fibonacci retracement and a recently broken range floor.
Indecisive positioning argues against taking a trade on either the long or the short side for the time being. We will remain on the sidelines, waiting for a more actionable opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com