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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 looks vulnerable to deeper losses against the British Pound after prices turned downward from trend line resistance in play since early January. A daily close below the 50% Fibonacci expansionat 0.7290 exposes the 61.8% level at 0.7219. Alternatively, a turn above the intersection of trend line resistance and the 38.2% Fib at 0.7361opens the door for a test of the 23.6% expansion at 0.7449.
We entered short EURGBP at 0.7341, initially targeting 0.7290. A stop-loss will be triggered on a daily close above 0.7386. We will book half of the position and move the stop-loss 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
