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- 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.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com