EUR/GBP Technical Analysis: Waiting for Selling Opportunity
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- EUR/GBP Technical Strategy: Pending Short
- Support: 0.7873, 0.7834, 0.7772
- Resistance:0.7911, 0.7958, 0.7992
The Euro is accelerating lower against the British Pound anew, with prices dropping to the lowest level in a month. Near-term support is at 0.7873, the July 23 low, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 0.7834. Alternatively, a reversal above the 23.6% level at 0.7911 clears the way for a challenge of the 14.6% Fib at 0.7958.
While entering short is a tempting proposition, risk/reward considerations argue against taking a position at market with prices asymmetrically close to the would-be initial target versus a reasonable stop-loss level. With that in mind, we will begrudgingly stand aside for now.
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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.