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Forex: EUR/GBP Technical Analysis – Down Trend Set to Resume?

Ilya Spivak

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8240 (23.6% Fib exp.), 0.8212 (38.2% Fib exp.)
  • Resistance: 0.8283-0.8306 (trend line cluster), 0.8349 (Feb 6 high)

A decision to pass on an opportunity to buy the Euro against the British Pound yesterday proved wise as prices retreated from trend line resistance in the 0.8283-0.8306 area. A daily close below support at 0.8240, the 23.6% Fibonacci expansion, exposes the 38.2% level at 0.8212. Alternatively, a move through resistance targets the February 6 high at 0.8349.

Prices are sitting too close to relevant support to justify a short entry from a risk/reward perspective. We will remain on the sidelines for now, looking for a more attractive selling opportunity.

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dailyclassics_eur-chf_body_Picture_11.png, Forex: EUR/GBP Technical Analysis – Down Trend Set to Resume?

Daily Chart - Created Using FXCM Marketscope 2.0

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

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