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Forex: EUR/GBP Technical Analysis ? Rally Stalls Above 0.82 Mark

February 20, 2014

Ilya Spivak





Talking Points:



  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8219 (14.6% Fib ret.), 0.8167 (Jan 22 low)
  • Resistance: 0.8258 (23.6% Fib ret.), 0.8314-20 (38.2% Fib ret., trend line)



    The Euro is stalling after launching a recovery against the British Pound as expected having produced a bullish Piercing Line candlestick formation. A daily close above resistance at 0.8258, the 23.6% Fibonacci retracement, targets a falling trend line set from late October at 0.8314 and the 38.2% level at 0.8320. Alternatively, a turn back below the 14.6% Fib at 0.8219 exposes the January 22 low at 0.8167.



    Risk/reward considerations argue against a trade at current levels as the pair trades wedged in close proximity to relevant up- and downside barriers. We will remain flat for now, looking for a move to trend line resistance to produce a selling opportunity.





    dailyclassics_eur-chf_body_Picture_11.png, Forex: EUR/GBP Technical Analysis - Rally Stalls Above 0.82 Mark










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    Source: DailyFx


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