EUR/GBP Technical Analysis: Selloff Continues for Fifth Day
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- EUR/GBP Technical Strategy: Short at 0.7341
- Support: 0.7131, 0.6989, 0.6847
- Resistance: 0.7219, 0.7242, 0.7290
The Euro continues to push downward against the British Pound, with prices sinking for a fifth consecutive day. Near-term support is at 0.7131, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 0.6989. Alternatively, a turn above the 61.8% Fib at 0.7219 clears the way for a challenge of fallingthe trend line resistance at 0.7242.
We sold EURGBP at 0.7341 and subsequently booked profit on half of the position. The remainder of the positioning remains open to capture any further downward momentum. The stop-loss has been trailed to the breakeven level (0.7341).
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com