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Forex: EUR/GBP Technical Analysis ? Struggling at 0.83 Figure

February 4, 2014

Ilya Spivak

Talking Points: EUR/GBP Technical Strategy: Flat Support: 0.8255 (14.6% Fib exp.), 0.8167-87 ( Jan 22 , 31 swing lows) Resistance: 0.8291-0.8309 (23.6% Fib ret., minor trend line.), 0.8364 (major trend line) The Euro is struggling to extend gain versus the British Pound near the 0.83 figure. Resistance is in the 0.8291-0.8309 area, marked by a falling trend line set from December and the 23.6% Fibonacci retracement, exposes. A daily close above this barrier exposes a longer-term trend line set from August, now at 0.8364. Alternatively, a turn below support at 0.8255, the 14.6% Fib expansion, targets recent swing lows in the 0.8167-87 area. Risk/reward considerations argue against entering a position at current levels with prices wedged between relevant up- and down-side barriers. Tactically, an actionable trade trigger is also absent. We will continue to monitor price activity from the sidelines for now.

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Source: DailyFx

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