The short EUR/GBP position was entered, and is moving towards its first target. Although the pair is trading near the entry point, mainly due to rumors of European bond purchases by China and Russia coupled with dovish commentary from the Bank of England, should these rumors amount to just that - rumors predicated on false pretences - the pair could drop quickly. Near-term support could come in the form of commentary out of Merkel and Sarkozy as well, but the fundamentals are clearly moving against the Euro in the near-term.
Entered: Short at 0.8660/50 [Trend Line Support, 100.0 FiboExt]
Stop: Stop to 0.8752 [76.4 FiboExt, 92-pip Risk]
Target 1 (Reward/Risk Ratio): 0.8587 [61.8 FiboRet] (73/92, 0.79)
Target 2: 0.8472/60 [76.4 FiboRet, March Low] (188/92, 2.04)
Target 3: 0.8284 [100.0 FiboRet, 2011 Low] (376/92, 4.09)
Timeframe: 6 days
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.