TechnoMeter

• EUR/GBP Technical Strategy: Flat
• Support: 0.7973, 0.7954, 0.7935
• Resistance:0.8007, 0.8031, 0.8050

The Euro began edging higher against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. A pullback now sees prices testing support at 0.7973, the intersection of the 38.2% Fibonacci retracement and a rising trend line set from July’s low. Breaching this barrier on a daily closing basis exposes the 50% level at 0.7954. Alternatively, a turn above the 23.6% Fib expansion at 0.8007 clears the way for a challenge of the 38.2% threshold at 0.8031.

We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com



More...