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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7158, 0.7013, 0.6949
- Resistance: 0.7247, 0.7392, 0.7509
The Euro moved upward against the British Pound as expected after producing a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7247, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.7392. Alternatively, a turn below the intersection of the 14.6% retracementand trend line resistance-turned-support at 0.7158clears the way for a challenge of the March 11 low at 0.7013.
We sold EURGBP at 0.7341 and subsequently booked profit on half of the position. The break above trend line resistance suggests a larger upswing is ahead. We will now exit the remainder of our short position, looking for any on-coming upswing to yield another selling opportunity.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
