EUR/GBP Technical Analysis: Pound Jumps to 2-Year High

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7889, 0.7861, 0.7833
  • Resistance:0.7924, 0.7971, 0.8033

The Euro has renewed its downward push against the British Pound, with prices sinking to the lowest level in nearly two years. Sellers are now aiming to challenge support at 0.7889, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7861. Alternatively, a reversal back above the 23.6% Fib at 0.7924 aims for support-turned-resistance at 0.7971.

While entering short is tempting, we will tactically opt not to pursue the position. Positive RSI divergence warns of lackluster downward momentum and hints losses may be short-lived. With that in mind, we will continue to stand on the sidelines.

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

EUR/GBP Technical Analysis: Pound Jumps to 2-Year High

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. EUR plummets on inflation expectations – MP
    Forex News

    EUR plummets on inflation expectations – MP

  2. EUR/USD Breaks Channel from November Low, AUD/USD Skewed by PBoC
    Forex News

    EUR/USD Breaks Channel from November Low, AUD/USD Skewed by PBoC

  3. EUR/GBP plummets to 0.7960
    Forex News

    EUR/GBP plummets to 0.7960

  4. EUR/GBP only slightly lower on strong UK eco data – KBC
    Forex News

    EUR/GBP only slightly lower on strong UK eco data – KBC

  5. Trading Video: The Next Big Euro Bear Leg
    Forex News

    Trading Video: The Next Big Euro Bear Leg

Trading Center