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

By DailyFx | July 15, 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

comments powered by Disqus
Related Forex Analysis
  1. EUR/GBP testing lows in 0.7880
    Forex News

    EUR/GBP testing lows in 0.7880

  2. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

  3. EUR/GBP attacking 0.7880 support
    Forex News

    EUR/GBP attacking 0.7880 support

  4. EUR/GBP Continues to Show Weakness
    Investing

    EUR/GBP Continues to Show Weakness

  5. EUR/GBP Technical Analysis: Support Found Below 0.79?
    Forex News

    EUR/GBP Technical Analysis: Support Found Below 0.79?

Trading Center