EUR/GBP: Euro Poised To Break Upward

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.7060, 0.6930, 0.6874
  • Resistance: 0.7097, 0.7141, 0.7206

The euro is attempting to break resistance capping gains against the British pound over the past three months. Near-term trend line resistance is at 0.7091, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.7141. Alternatively, a move below the 23.6% level at 0.7060 clears the way for a test of the 0.6930-50 area (July 17 and August 5 lows).

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.

EUR/GBP Daily Chart

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