EUR/GBP Technical Analysis: Euro Sinks to Two-Week Low
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- EUR/GBP Technical Strategy: Pending Short
- Support: 0.7935, 0.7911, 0.7873
- Resistance:0.7954, 0.7973, 0.7987
The Euro pushed lower anew against the British Pound, sliding to the weakest level in two weeks. A daily close below the 61.8% Fibonacci retracementat 0.7935 exposes the 23.6% Fib expansion at 0.7911. Alternatively, a turn above the 50% retracement at 0.7954 opens the door for a test of the 38.2% threshold at 0.7973
The push through trend line support suggests the corrective bounce from July’s low is yielding back to the dominant down trend. Selling at market is unattractive from a risk/reward perspective however and we will set an order to short at 0.7972 instead. If triggered, the position will initially target 0.7911 with a stop-loss activated on a daily close above 0.8033.
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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.