EUR/GBP Technical Analysis: Short Position Now in Play
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- EUR/GBP Technical Strategy: Short at 0.7840
- Support: 0.7803, 0.7765, 0.7728
- Resistance: 0.7850, 0.7896, 0.7953
The Euro looks to be resuming its long-term decline against the British Pound after prices completed a Triangle chart formation. Near-term support is at 0.7803, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the September 30 low at 0.7765. Alternatively, a reversal above Triangle floor support-turned-resistance at 0.7850 opens the door for a challenge of the 23.6% level at 0.7896.
We will now enter short, initially targeting 0.7803. A stop-loss will be activated on a daily close above 0.7877. 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
--- 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.