Tanalys

EUR/GBP Technical Analysis: Gains Capped Below 0.81 Again

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Talking Points:

The Euro stalled after soaring to challenge a horizontal threshold capping against the British Pound since late June. Near-term resistance is in the 0.8033-35 area, marked by the aforementioned ceiling and the 38.2% Fibonacci expansion, with a break above that on a daily closing basisexposing the 50% level at 0.8060. Alternatively, a turn below the 23.6% Fib at 0.8004 opens the door for a challenge of the 14.6% expansion at 0.7985.

Prices are wedged too tightly between near-term up- and down-side technical barriers to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for the time being, waiting for a more compelling 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

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