EUR/GBP Technical Analysis: Treading Water Below 0.73
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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.
We sold EURGBP at 0.7311 and have since booked profit on half of the trade. The remainder of the trade will continue to stay in play with a stop-loss at the breakeven level (0.7311) to take advantage of any further downward movement.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com