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Forex: EUR/GBP Technical Analysis ? Drifting Toward January Low

February 2, 2014

Ilya Spivak

Talking Points: EUR/GBP Technical Strategy: Flat Support: 0.8191 (38.2% Fib exp.), 0.8156-67 ( Jan 22 low, 50% Fib exp.) Resistance: 0.8235 (23.6% Fib exp.), 0.8283 (falling trend line) The Euro is back on the defensive against the British Pound , with prices slowly sliding toward January's swing bottom below the 0.82 figure. The pair is now sitting at near-term support, marked by the 38.2% Fibonacci expansion at 0.8191, arguing against chasing the move lower from risk/reward perspective. The absence of a discernible bullish reversal signal means long positions are likewise unattractive. Indeed, the mere presence of support does not guarantee that it will be respected and a further break lower is from an impossibility. As such, we will remain on the sidelines for now until something more tangible emerges.

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Source: DailyFx

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