DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8030 (38.2% Fib exp.), 0.7992 (50% Fib exp.)
  • Resistance:0.8076-81 (May 23 low, 23.6% Fib exp.), 0.8105 (14.6% Fib exp.)

The Euro dropped to the lowest level in 18 months against the British Pound after taking out the May swing bottom. Support is now at 0.8030, the 38.2% Fibonacci expansion, with a daily lose below this barrier exposing the 50% level at 0.7992. Alternatively, a turn back above resistance in the 0.8076-81 area – marked by the 23.6% Fib and the May 23 bottom – clears the way for a challenge of the 14.6% expansion at 0.8105.

While taking a short position at current levels is tempting, emerging signs of positive RSI divergence hint downward momentum may be ebbing. We will tactically opt not to chase the pair lower here.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

EUR/GBP Technical Analysis – Opting to Pass on Short Trade

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/GBP: recovery attempts failing before 0.7206 downtrend

  2. Forex News

    EUR/GBP holding on to 0.7000

  3. Forex News

    EUR/GBP off lows, near 0.7030 on German data

  4. Forex News

    EUR/GBP drops to lows near 0.7020

  5. Forex News

    EUR/GBP Technical Analysis: Sellers Aim Below 0.70 Mark

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!