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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7980, 0.7949, 0.7929
- Resistance: 0.8012, 0.8033, 0.8047
The Euro continues to push aggressively higher against the British Pound, soaring to the highest level in a month. A daily close above the 123.6% Fibonacci expansion at 0.8012 exposes the 0.8031-33 area marked by the 138.2% level and the June 25 high. Alternatively, a turn back below the 100% Fib at 0.7980 opens the door for a challenge of the 76.4% expansion at 0.7949.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com