EUR/GBP Technical Analysis – Prices rebounded as expected after putting in a bullish Piercing Line candlestick pattern above support in the 0.8583-90 area marked by a horizontal pivot dating back to mid-February and the 38.2% Fibonacci retracement. The pair is now testing resistance is at 0.8636, the 23.6% Fib, with a break above that initially targeting the 38.2% Fib expansion at 0.8673. The weekly chart seems to outline the makings of a looming downward reversal but an actionable short trade setup is absent for now.
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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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