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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7038, 0.6997, 0.6930
- Resistance: 0.7105, 0.7159, 0.7213
The Euro sees resistance near the 0.71 figure against the British Pound after finding interim support above 0.69 threshold. Near-term resistance is at 0.7105, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.7159. Alternatively, a move below the 23.6% Fib at 0.7038 clears the way for a test of the 14.6% retracement at 0.6997.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com