EUR/GBP Technical Analysis: Short Triggers, Hits First Target
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- EUR/GBP Technical Strategy: Short at 0.7311
- Support: 0.7239, 0.7149, 0.7005
- Resistance: 0.7392, 0.7509, 0.7627
The Euro declined against the British Pound as expected after putting in a Shooting Star candlestick below the 0.74 figure. 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.
Our pending order to short EURGBP at 0.7311 as triggered and prices subsequently hit the first objective at 0.7239. We have now booked profit on half of the position. The remainder of the trade will remain open with a stop-loss at breakeven (0.7311) to capture any further downside momentum.
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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.