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EUR/GBP Technical Strategy: Flat
- Euro rebound brings prices toward 2-month high vs British Pound
- Overall trajectory defined by falling channel set from October 2017
- Waiting for actionable signal, improved risk/reward setup for trade
The Euro continues to inch upward against the British Pound but the dominant price trend continues to favor a downside bias for the single currency. The pair has recovered to the highest level in nearly two months but price action remains firmly locked within a falling channel set from October 2017.
Major resistance comes in at 0.8904, the confluence of a former chart inflection point as well as the trend channel top. A close above that confirmed on a daily closing basis exposes the March 7 high at 0.8968. Alternatively, a turn below resistance turned-support at 0.8797 targets counter-trend support at 0.8730.
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Prices are too close to immediate resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a clearly-defined topping signal warns against taking up the short side to bet on bearish trend resumption prematurely. On balance, standing aside seems most sensible for now.
EUR/GBP TRADING RESOURCES
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
