To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7873, 0.7777, 0.7728
- Resistance: 0.7953, 0.8053, 0.8082
The Euro declined as expected against the British Pound after showing a bearish Dark Cloud Cover candlestick pattern. Near-term support is in the 0.7873-96 area, marked by the July 23 low and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.7777-0.7803 zone (July 2012 bottom, 38.2% level). Alternatively, a turn above the 14.6% Fib at 0.7953 opens the door for a challenge of the 0.8030-53 zone (September 9 close, falling channel top).
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
