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.