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EUR/GBP Technical Strategy: Flat
Support: 0.7950 0.7889 0.7873
Resistance:0.7997 0.8074 0.8136
The Euro launched upward against the British Pound as expected after prices produced in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7997 the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 0.8074. Alternatively a reversal below the 14.6% Fib at 0.7950 opens the door for a test of trend line resistance-turned-resistance at 0.7889.
The ECB looks to be the most dovish of the leading central banks putting the Euro at a disadvantage against its major counterparts. With that in mind we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity.
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Daily Chart - Created Using FXCM Marketscope 2.0
-- Written by Ilya Spivak Currency Strategist for DailyFX.com