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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.8213-24 (Pitchfork bottom, 50% Fib exp.), 0.8204 (61.8% Fib exp.)
- Resistance: 0.8244 (38.2% Fib exp.), 0.8269 (23.6% Fib exp.)
A Euro rebound against the British Pound may be in the cards after prices put in an Inverted Hammer candlestick above support in the 0.8213-24 area, marked by an Andrew’s Pitchfork bottom and the 50% Fibonacci expansion. A bounce from here sees initial resistance at 0.8244, the 38.2% level, with a break above that targeting the 23.6% Fib at 0.8269. Alternatively, a push through support exposes the 61.8% expansion at 0.8204.
A Hammer candlestick is indicative of indecision and is not an actionable trade signal in its own right, warning against taking a long position. We will continue to stand aside for now, looking for a more attractive setup to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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