EUR/GBP Technical Analysis: Ready to Push Beyond 0.90 Level?

(MENAFN- DailyFX) EUR/GBP Technical Strategy: Flat completes Falling Wedge pattern, breaks four-month range top Chart setup hints a move to test resistance above 0.90 figure is ahead Long trade unattractive as ECB monetary policy decision approaches The Euro maybe finally ready to make good on technical positioning arguing for gains versus the after months of procrastination. Prices completed bullish Falling Wedge chart formation and cleared four-month range resistance, opening the door for a move above the 0.90 figure.

Near-term resistance now stands at 0.9067, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis clearing a path to challenge the 50% level at 0.9184. Alternatively, a move back below the 23.6% Fib at 0.8922 eyes a retest of the Wedge top at 0.8870, then a support cluster in the 0.8795-0.8806 area.

While taking up the long side is compelling on purely technical grounds, the proximity of heavy-duty event risk by way warns against such a course. The upcoming ECB monetary policy announcement as the markets clamor for tightening clues, hinting it is best to stand aside.

and its impact on the Euro live!

EUR/GBP TRADING RESOURCES Just getting started? See our Having trouble with your strategy? Here's the and have your trading questions answered --- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or on Twitter

To receive Ilya's analysis directly via email, please

MENAFN0703201800760000ID1096553903