EUR/GBP Technical Analysis: Retesting Pivotal Trend Line

By DailyFx | Updated August 05, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7909, 0.7860-73, 0.7783
  • Resistance:0.7984-97, 0.8074, 0.8136

The Euro launched upward against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. Near-term resistance is in the 0.7984-97 area, marked by the 23.6% Fibonacci retracement and the August 1 high. A break above that on a daily closing basis exposes the 38.2% level at 0.8074. Alternatively, a reversal below trend line resistance-turned-resistance at 0.7909 opens the door for a test of the 0.7860-73 region, bracketed by the July 23 low and the 23.6% Fib expansion.

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: Retesting Pivotal Trend Line

Daily Chart - Created Using FXCM Marketscope 2.0

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