EUR/GBP Technical Analysis: Holding Short as Prices Digest
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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 turned lower against the British Pound as expected after producing 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.
We entered short EURGBP at 0.7311 and have since booked profit on half of the trade. The rest of the position will remain in play with a stop-loss at the breakeven level (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.