EUR/GBP Technical Analysis: Upswing Clues Remain Intact

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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 may be preparing to turn higher against the British Pound having put in a Bullish Engulfing candlestick pattern. A daily close above the intersection of trend line resistance and the 50% Fibonacci expansionat 0.7290 exposes the 38.2% level at 0.7361. Alternatively, a turn below the 61.8% Fib at 0.7219 opens the door for a test of the 76.4% Fib at 0.7131.

We entered short EURGBP at 0.7341 and subsequently booked 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