EUR/GBP Technical Analysis: Half of Profit Booked on Short

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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7341
• Support: 0.7219, 0.7131, 0.6989
• Resistance: 0.7290, 0.7361, 0.7449

The Euro accelerated downward against the British Pound, with sellers securing a foothold below the 0.73 figure. A daily close below the 61.8% Fibonacci expansionat 0.7219 exposes the 76.4% level at 0.7131. Alternatively, a turn above the 50% Fib at 0.7290 opens the door for a test of the intersection of trend line resistance and the 38.2% Fib at 0.7361.

We entered short EURGBP at 0.7341. The trade has now met its initial targeting 0.7290 and we have taken profit on half of the position. The rest of the trade remains open to capture any further downside. The stop-loss has been adjusted to the breakeven level (0.7341).

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com