EUR/GBP Technical Analysis: Euro Sold vs. British Pound
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- EUR/GBP Technical Strategy: Short at 0.7850
- Support: 0.7864, 0.7802, 0.7740
- Resistance: 0.7903, 0.7941, 0.7988
The Euro appears vulnerable to deeper losses against the British Pound after prices spiked to the weakest level in over two years. A daily close below the 50% Fibonacci expansion at 0.7802 exposes the 61.8% level at 0.7740. Alternatively, a turn above the 38.2% Fib at 0.7864 opens the door for a test of triangle floor support-turned-resistance at 0.7901.
Risk/reward considerations now allow for a short position and we will sell EURGBP here, initially targeting 0.7802. A stop-loss will be activated on a daily close above 0.7898. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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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.