EUR/GBP Technical Analysis: Bounce Sought to Enter Short
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Pending Short
- Support: 0.7954, 0.7935, 0.7911
- Resistance:0.7973, 0.7983, 0.8033
The Euro appears poised to re-launch is down trend against the British Pound prices recoiled resistance above the 0.8300 figure. Near-term support is at 0.7954, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 0.7935. Alternatively, a reversal above the 38.2% Fib at 0.7973 clears the way for a challenge of rising trend line support-turned-resistance at 0.7983.
The rising trend line break suggests the corrective upswing initiated in late July has now given way to the dominant downward trajectory. Entering at current levels is unattractive from a risk/reward perspective however and we will opt to establish an order to sell the pair at 0.7972. If triggered, the position will initially target 0.7911 with a stop-loss activated on a daily close above 0.8033.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.