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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.8148-65 (38.2% Fib exp., Feb 17 low, channel floor), 0.8093 (50% Fib exp.)
- Resistance: 0.8200, 0.8222 (channel top)
The Euro continues to edge lower against the British Pound, producing the longest consecutive losing streak since September 2013. Prices continue to prove support in the 0.8148-65 area, the intersection of the February 17 low, the 38.2% Fibonacci expansion and the bottom of a falling channel. A daily close below that exposes the 50% level at 0.8093. Near-term resistance is at the 0.82 figure, followed by the channel top at 0.8222.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we remain flat for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com