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. Latest Promise of Easing from ECB Keeps Euro Rebound at Bay
    Forex News

    Latest Promise of Easing from ECB Keeps Euro Rebound at Bay

  2. EUR plummets on inflation expectations – MP
    Forex News

    EUR plummets on inflation expectations – MP

  3. 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

  4. EUR/GBP plummets to 0.7960
    Forex News

    EUR/GBP plummets to 0.7960

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

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

Trading Center