EUR/GBP Technical Analysis: Eyeing 0.74 Figure Once Again
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- EUR/GBP Technical Strategy: Flat
- Support: 0.7239, 0.7149, 0.7005
- Resistance: 0.7392, 0.7509, 0.7627
The Euro declined as expected against the British Pound after prices put in a bearish Evening Star candlestick pattern. Near-term support is at 0.7239, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.7149. Alternatively, a reversal above the 0.7384-92 area (38.2% Fib retracement, March 25 high) clears the way for a challenge of the 50% threshold at 0.7509.
We entered short EURGBP at 0.7323 and have subsequently booked profit on half of the position. The remainder of the trade was stopped out at breakeven. We will take to the sidelines from here, waiting for another opportunity to re-establish short.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com