EUR/GBP Technical Analysis: Short Trade Target Looms
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- EUR/GBP Technical Strategy: Short at 0.7840
- Support: 0.7803, 0.7765, 0.7728
- Resistance: 0.7860, 0.7896, 0.7953
The Euro looks to be resuming its move lower against the British Pound after a brief corrective upswing. 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 0.7860 opens the door for a challenge of the 23.6% level at 0.7896.
We sold EURGBP at 0.7840, initially targeting 0.7803. A stop-loss will be activated a daily close above 0.7877. We will book half of the position and move the stop-loss to breakeven once prices reach the first objective.
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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.