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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7836, 0.7809, 0.7751
- Resistance: 0.7880, 0.7915, 0.7950
The Euro launched an aggressive recovery against the British Pound, issuing the largest daily advance in a month. Near-term resistance is at 7880, the 38.2% Fibonacci retracement, with a break above that exposing the 0.7907-15 area marked by the underside of a previously broken triangle pattern and the 50% level. Alternatively, a reversal below the 23.6% Fib at 0.7836 opens the door for a test of the 14.6% retracement at 0.7809.
We entered short EURGBP at 0.7850and have since taken profit on half of our exposure.The rest of the trade stopped out at breakeven and we will monitor price action here for another selling opportunity in the days ahead.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
