EUR/GBP Technical Analysis: Short Trade Remains in Play

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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7323
• Support: 0.7258, 0.7181, 0.7055
• Resistance: 0.7384, 0.7443, 0.7545

The Euro may be renewing its down trend against the British Pound after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.7258, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.7181. Alternatively, a reversal above the March 25 high at 0.7384clears the way for a challenge of the 50% Fib retracement at 0.7443.

We entered short EURGBP at 0.7323, initially targeting 0.7258. A stop-loss will be triggered on a daily close above 0.7384. 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