EUR/GBP Technical Analysis: Euro Rebound Hinted Ahead

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7903, 0.7880, 0.7861
  • Resistance:0.7924-34, 0.7971, 0.8024

The Euro may be gearing up for a rebound against the British Pound after prices put in a bullish Morning Star candlestick pattern. A daily close above resistance in the 0.7924-34 area, marked by a falling trend line set from March and a channel top in play since June, opens the door for a test of support-turned-resistance at 0.7971 (June 13 low). Alternatively, a reversal below support at 0.7903, the 23.6% Fibonacci expansion, clears the way for a move to the 38.2% level at 0.7880.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat for now.

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

EUR/GBP Technical Analysis: Euro Rebound Hinted Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/GBP Technical Analysis: Looking to Sell on Rebound

  2. Forex News

    EUR/GBP bears looking for a break of 43 year uptrend - CB

  3. Forex News

    EUR/GBP a break of 0.7390 could expose 0.7152 – RBS

  4. Forex News

    EUR/GBP edges lower, trades at 5-DMA

  5. Forex News

    EUR/GBP trades flat after upbeat German data

Trading Center