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The Euro fell against the British Poundas expected, with prices clearing trend line support set from mid-February to retest former support dating back to August 2013. This level is now at 0.8219, with a break below that initially exposing the 38.2% Fibonacci expansion at 0.8165. Resistance lines up in the 0.8255-64 area – marked by the February trend line and the 23.6% level – with a break above that targeting the 0.83 figure at first.
Prices are wedged too tightly between near-term support and resistance to justify taking a position on either side of the market from a risk/reward perspective. We will continue to stand aside, looking for a more actionable setup to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com