EUR/GBP Technical Analysis: Looking for Selloff Resumption
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- EUR/GBP Technical Strategy: Short at 0.7840
- Support: 0.7803, 0.7765, 0.7728
- Resistance: 0.7858, 0.7896, 0.7953
The Euro stalled after mounting a tepid bounce against the British Pound, with the path of least resistance still seemingly favoring the downside. A daily close below the 38.2% Fibonacci expansionat 0.7803 exposes the September 30 low at 0.7765. Alternatively, a turn above Triangle floor support-turned-resistance at 0.7858 clears the way for a test of the 23.6% level at 0.7896.
We entered short EURGBP at 0.7840, initially targeting 0.7803. A stop-loss is set to trigger 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