EUR/GBP Technical Analysis: Euro Short Trade Triggered

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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7341
• Support: 0.7290, 0.7219, 0.7131
• Resistance: 0.7361, 0.7449, 0.7503

The Euro may be resuming its down trend against the British Pound after recoiling from trend line resistance capping gains since early January. Near-term support is at 0.7290, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.7219. Alternatively, a reversal above the intersection of trend line resistance and the 38.2% Fib at 0.7361clears the way for a challenge of the 23.6% expansion at 0.7449.

We will now enter short, initially targeting 0.7290. A stop-loss will be activated on a daily close above 0.7386. We will take profit on half of the position and move the stop to the breakeven level 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