26 Jul 2013
EUR/GBP lurking below Fibonacci resistance at 0.8631 and 0.8646 ahead of data
FXstreet.com (Barcelona) - The EUR/GBP cross bounced as high as 0.8643 Thursday but finished well off the highs and below Fibonacci resistance at 0.8631 as traders wait for German import price and British house price data.
Outside of the data, technicals may drive traders’ decisions regarding EUR/GBP
The data due out from Germany and Great Britain Friday is considered lesser in importance than some of the data points from earlier in the week. That being noted, barring any major surprises in the data, trading action may be dictated more by the technicals on the EUR/GBP chart than anything else.
Technical commentary on EUR/GBP
After four solid days of selling, we have seen three days of what technicians describe as a modest corrective bounce. Thursday’s trading may have signaled the end of the bounce, however, after EUR/GBP spiked higher and then finished back below Fibonacci resistance at 0.8631. Unless that level and 0.8646 and 0.8661 just above that conquered, more downside action may resume quickly. Support for EUR/GBP comes in at Tuesday’s low at 0.8581 and the 7/3 low at 0.8513.
Outside of the data, technicals may drive traders’ decisions regarding EUR/GBP
The data due out from Germany and Great Britain Friday is considered lesser in importance than some of the data points from earlier in the week. That being noted, barring any major surprises in the data, trading action may be dictated more by the technicals on the EUR/GBP chart than anything else.
Technical commentary on EUR/GBP
After four solid days of selling, we have seen three days of what technicians describe as a modest corrective bounce. Thursday’s trading may have signaled the end of the bounce, however, after EUR/GBP spiked higher and then finished back below Fibonacci resistance at 0.8631. Unless that level and 0.8646 and 0.8661 just above that conquered, more downside action may resume quickly. Support for EUR/GBP comes in at Tuesday’s low at 0.8581 and the 7/3 low at 0.8513.