EUR/GBP Technical Analysis: Candle Setup Hints at Bounce
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- EUR/GBP Technical Strategy: Short at 0.7341
- Support: 0.7097, 0.7028, 0.6944
- Resistance: 0.7150, 0.7183, 0.7234
The Euro may be preparing to advance against the British Pound after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7150, the 23.6% Fibonacci retracement, with a break above that exposing falling trend line resistance at 0.7183. Alternatively, a turn below the 14.6% retracement at 0.7097clears the way for a challenge of the 76.4% Fib expansion at 0.7028.
We sold EURGBP at 0.7341 and subsequently booked profit on half of the position. The remainder of the positioning remains open to capture any further downward momentum. The stop-loss has been trailed 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.