EUR/GBP Technical Analysis: Waiting to Confirm Short Trade
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7819, 0.7777, 0.7740
- Resistance: 0.7880, 0.7915, 0.7950
The Euro may be setting up a reversal downward against the British Pound after putting in a Spinning Top candlestick. Near-term support is at 0.7819, October 3 low, with a break below that on a daily closing basis exposing the July 2012 bottom at 0.7777. Alternatively, a move above the 0.7873-80 area marked by the July 23 low and the 38.2% Fibonacci retracement opens the door for a challenge of the 7909-15 zone bracketed by a previously broken triangle pattern bottom and the 50% level.
A Spinning Top candle points to indecision and is not an actionable trade signal in isolation. As such, we will remain on the sidelines for now until adequate confirmation to enter short materializes.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.