The British Pound is launching a dramatic recovery against the Euro. Prices are testing support at 0.8237, the 61.8% Fibonacci retracement, with a break below that targeting the 76.4% level at 0.8210. A turn back above the 50% Fib at 0.8258 eyes the 38.2% retracement at 0.8280.
Entering short with prices directly at support is unattractive from a risk/reward perspective. Alternatively, a long position would presume a reversal higher, a proposition that lacks any substantive evidence for the time being. As such, we remain on the sidelines.