EUR/GBP Technical Analysis: Digesting Below 2-Month High

By DailyFx | August 21, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7973, 0.7954, 0.7935
  • Resistance:0.8007, 0.8031, 0.8050

The Euro launched upward against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. Prices are now in consolidation mode having touched the highest level in two months. A daily close above the 23.6% Fibonacci expansion at 0.8007 exposes the 38.2% level at 0.8031. Alternatively, a move below 0.7973, the intersection of the 38.2% Fib retracement and a rising trend line set from late July, opens the door for a test of the 50% threshold at 0.7954.

The ECB looks to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major counterparts. With that in mind, we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/GBP Technical Analysis: Digesting Below 2-Month High

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center