EUR/GBP Technical Analysis: Targeting Below 0.72 Figure

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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7323
• Support: 0.7181, 0.7055, 0.6954
• Resistance: 0.7258, 0.7384, 0.7443

The Euro declined as expected against the British Pound after prices put in a bearish Evening Star candlestick pattern. A daily close below the 23.6% Fibonacci expansionat 0.7181 exposes the 38.2% level at 0.7055. Alternatively, a turn above the 14.6% Fib at 0.7258opens the door for a test of the March 25 high at 0.7384.

We sold EURGBP at 0.7323 and have subsequently booked profit on half of the trade. The rest of the position will stay open to take advantage of any further downward movement. The stop-loss has been adjusted 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