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- EUR/GBP Technical Strategy: Flat
- Support: 0.8195 (Apr 30 low), 0.8172 (double bottom)
- Resistance: 0.8243 (23.6% Fib ret.), 0.8273 (38.2% Fib ret.)
The Euro continues to consolidate in a range above the the April 30 low at 0.8195 against the British Pound. A break below support on a daily closing basis initially exposes a double bottom at 0.8172. Alternatively, a reversal above near-term resistance at 0.8243, the 23.6% Fibonacci retracement, will open the door for a challenge of the 38.2% level at 0.8273.
Entering short at current levels looks unattractive from a risk/reward perspective with prices in close proximity to relevant support. On the other hand, the absence of a defined upward reversal signal argues against taking up the long side. We will remain flat for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com