EUR/GBP Technical Analysis: Short Trade Remains Active
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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 declined against the British Pound as expected after putting in a Shooting Star candlestick below the 0.74 figure. Near-term support is at 0.7149, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7005. Alternatively, a turn above the 14.6% Fib at 0.7239 clears the way for a challenge of the 0.7384-92 area (38.2% Fib retracement, March 25 high).
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.