DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• EUR/GBP Technical Strategy: Flat

• Support: 0.6985, 0.6930, 0.6876

• Resistance: 0.7051, 0.7092, 0.7159

The Euro declined against the British Pound as expected after producing a bearish Dark Cloud Cover candlestick pattern. A daily close below the 38.2% Fibonacci expansion at 0.6985 exposes the 50% level at 0.6930. Alternatively, a reversal back above the 23.6% Fib at 0.7051 opens the door for a challenge of trend line resistance at 0.7092.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.