EUR/GBP Technical Analysis: Short Trade Hits First Target
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- EUR/GBP Technical Strategy: Short at 0.7323
- Support: 0.7181, 0.7055, 0.6954
- Resistance: 0.7258, 0.7384, 0.7443
The Euro turned lower against the British Pound as expected after prices produced a bearish Evening Star candlestick pattern. Near-term support is at 0.7181, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7055. Alternatively, a reversal above the 14.6% Fib at 0.7258clears the way for a challenge of the March 25 high at 0.7384.
We entered short EURGBP at 0.7323 and have subsequently booked profit on half of the position. The remainder of the trade will remain open to capture any further downside momentum. The stop-loss has been trailed to the breakeven level (0.7323).
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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.