EUR/GBP Technical Analysis: Short Trade Setup Established
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- EUR/GBP Technical Strategy: Pending Short at 0.7311
- Support: 0.7239, 0.7149, 0.7005
- Resistance: 0.7392, 0.7509, 0.7627
The Euro turned lower against the British Pound as expected after putting in a Shooting Star candlestick below the 0.74 figure. A daily close below the 14.6% Fibonacci expansionat 0.7239 exposes 23.6% level at 0.7149. Alternatively, a move above the 0.7384-92 area (38.2% Fib retracement, March 25 high) opens the door for a test of the 50% threshold at 0.7509.
Prices are a bit too close to support to justify entering short from a risk/reward perspective. As such, we will establish a pending order to sell the pair at 0.7311. If triggered, the trade will initially target 0.7239 and carry a stop-loss to be activated on a daily close above 0.7384.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com