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EUR/GBP Technical Analysis ? Stalling at Trend Line Support

May 20, 2014

Ilya Spivak

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8124 (falling trend line), 0.8096 (channel floor)
  • Resistance:0.8153 (channel top), 0.8190-0.8200 (23.6% Fib ret., range floor)

    A brief Euro recovery has been overturned, with the British Pound securing its strongest close in 16 months against the single currency. Support lines up 0.8124, marked by a falling trend line set from late January, with a break below that exposing the bottom of a falling channel at 0.8096. Alternatively, a daily close above the channel top at 0.8153 clears the way for a challenge of the 0.8190-0.8200 area, marked by the 23.6% Fibonacci retracement and a recently broken range floor.

    Indecisive positioning argues against taking a trade on either the long or the short side for the time being. We will remain on the sidelines, waiting for a more actionable opportunity to present itself.

    EUR/GBP Technical Analysis - Stalling at Trend Line Support

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    Source: DailyFx

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