EUR/GBP Technical Analysis: 3-Week Trend Support in Focus

By DailyFx | August 12, 2014 AAA

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Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7937, 0.7920, 0.7872
  • Resistance:0.7997, 0.8074, 0.8136

The Euro moved higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A daily close above resistance at 0.7997, the 23.6% Fibonacci retracement, exposes the 38.2% level at 0.8074. Alternatively, a push below trend line support at 0.7937 clears the way for a challenge of the 14.6% Fib expansion at 0.7920.

We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.

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EUR/GBP Technical Analysis: 3-Week Trend Support in Focus

Daily Chart - Created Using FXCM Marketscope 2.0

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