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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Euro Launches Rebound vs. British Pound After Finding Support Above 0.75
- Waiting for Positioning to Offer Actionable Setup Before Entering a Trade
The Euro is attempting to rebuild upside momentum against the British Pound after prices found support above the 0.75 figure. The series of higher highs and lows set from mid-November 2015 remains intact, suggesting the near-term bias favors the upside.
A daily close above the 14.6% Fibonacci expansion at 0.7639 opens the door for a challenge of the 23.6% level at 0.7708. Alternatively, a reversal below the January 22 low at 0.7526 paves the way for a test of the 38.2% Fib retracement at 0.7460.
Prices are too close to near-term resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a clear-cut bearish reversal signal hints it is premature to take up the short side. With that in mind, we will stand aside for now until a more attractive opportunity presents itself.
Gauge trends and find turning points for the major currencies with DailyFX SSI
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