EUR/GBP Technical Analysis: Sideways Trade Continues
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- EUR/GBP Technical Strategy: Short at 0.7311
- Support: 0.7149, 0.7005, 0.6887
- Resistance: 0.7239, 0.7392, 0.7509
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 23.6% Fibonacci expansionat 0.7149 exposes 38.2% level at 0.7005. Alternatively, a move above the 14.6% Fib at 0.7239 opens the door for a test of the 0.7384-92 area (38.2% Fib retracement, March 25 high).
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.