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EUR/GBP Technical Analysis: Stalling at 2-Month Support
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Talking Points:
EUR/GBP Technical Strategy: Flat
Euro treading water above two-month trend support below 0.89 figure
Inconclusive positioning, adverse risk/reward setup argue against a trade
The Euro is digesting losses after a pullback following the broad-based British Pound “flash crash” found support below the 0.89 figure. The pair sits at trend support defining the near-term uptrend, with a break lower likely to mark a broader reversal of trajectory.
A daily close below 0.8885 (rising trend line, 38.2% Fibonacci retracement) opens the door for a test of the 50% level at 0.8780. Alternatively, push above the 23.6% Fib at 0.9015 paves the way for a challenge of the October 11 high at 0.9142.
Positioning is inconclusive at this point. The dominant near-term uptrend remains intactbut prices are wedged too closely between immediate support and resistance to justify a trade from a risk/reward perspective. With that in mind, opting for the sidelines seems prudent until more attractive emerges.
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