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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.8197 (Apr 22 low), 0.8187 (trend line)
- Resistance: 0.8245 (23.6% Fib ret.), 0.8274 (38.2% Fib ret.)
The Euro is attempting to launch a recovery against the British Pound after finding an interim bottom near the 0.82 figure. Near-term resistance is at 0.8245, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8274. Near-term support is at 0.8197, the April 22 low, followed by a falling trend line set from late March (now at 0.8187).
Risk/reward considerations argue against taking a long position with prices trading in close proximity to relevant resistance. We will remain on the sidelines for the time being, waiting for a more attractive setup to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com