EUR/GBP Technical Analysis: Rising Trend Line Under Fire

By DailyFx | Updated August 24, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7973, 0.7954, 0.7935
  • Resistance:0.8033, 0.8074, 0.8136

The Euro edged higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A pullback now sees prices testing support at 0.7973, the intersection of the 38.2% Fibonacci retracement and a rising trend line set from July’s low. Breaching this barrier on a daily closing basis exposes the 50% level at 0.7954. Alternatively, a turn above the June 25 high at 0.8033 clears the way for a challenge of an alternate 38.2% Fib retracement at 0.8074.

We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.

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

EUR/GBP Technical Analysis: Rising Trend Line Under Fire

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. EUR/GBP Technical Analysis: Conflicting Chart Signals Persist
    Forex News

    EUR/GBP Technical Analysis: Conflicting Chart Signals Persist

  2. EUR/GBP supported near 0.7860
    Forex News

    EUR/GBP supported near 0.7860

  3. EUR/GBP Technical Analysis: Torn Between Competing Cues
    Forex News

    EUR/GBP Technical Analysis: Torn Between Competing Cues

  4. EUR/GBP at the roof of current range
    Forex News

    EUR/GBP at the roof of current range

  5. EUR/GBP capped around 0.7900
    Forex News

    EUR/GBP capped around 0.7900

Trading Center