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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7399, 0.7302, 0.7205
- Resistance: 0.7459, 0.7507, 0.7556
The Euro is attempting to mount a recovery against the British Pound after slumping to the lowest level in seven years. A daily close below the 76.4% Fibonacci expansion at 0.7399 exposes the 100% level at 0.7302. Alternatively, a turn above the 61.8% Fib at 0.7459 opens the door for a challenge of the 50% expansion at 0.7507.
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 long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
