TechnoMeter

Talking Points:

• EUR/GBP Technical Strategy: Flat
• Support: 0.7917, 0.7887, 0.7849
• Resistance: 0.7947, 0.7985, 0.8030

The Euro has launched a brisk recovery against the British Pound, rising to the highest level in a month. Near-term resistance is at 0.7947, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 0.7985. Alternatively, a turn back below the 50% Fib at 0.7917 opens the door for a challenge of the 38.2% retracement at 0.7887.

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.



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




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