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Talking Points:
- EUR/GBP Technical Strategy: Short at 0.7311
- Support: 0.7005, 0.6887, 0.6770
- Resistance: 0.7149, 0.7239, 0.7392
The Euro looks set to continue lower against the British Pound having topped as expected after putting in a Shooting Star candlestick. Near-term support is at 0.7005, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.6887. Alternatively, a turn back above the 23.6% Fib at 0.7149 clears the way for a challenge of the 14.6% expansion at 0.7239.
We sold EURGBP at 0.7311 and have since booked profit on half of the trade. The remainder of the trade will continue to stay in play with a stop-loss at the breakeven level (0.7311) to take advantage of any further downward movement.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
