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

Related Forex Analysis
  1. Forex News

    EUR/GBP Technical Analysis: Familiar Range Remains in Play

  2. Forex News

    GBP/USD knocks the 1.5800 doors

  3. Forex News

    EUR/GBP drops to test weekly lows

  4. Forex News

    EUR Short Covering Elusive as More Talk of QE Inspires Bears

  5. Forex News

    EUR/GBP wavers after UK GDP

Trading Center