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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7164, 0.7128, 0.7062
- Resistance: 0.7235, 0.7293, 0.7388
The Euro paused to digest gains after recovering to the highest level in a month against the British Pound. A daily close above the 61.8% Fibonacci retracementat 0.7235 exposes the 76.4% level at 0.7293. Alternatively, a reversal below the 14.6% Fib expansion at 0.7164 opens the door for a challenge of the 23.6% threshold at 0.7128.
The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com