EUR/GBP Technical Analysis: Euro Rebound in the Cards?
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- EUR/GBP Technical Strategy: Short at 0.7311
- Support: 0.7116, 0.7005, 0.6887
- Resistance: 0.7222, 0.7384, 0.7444
The Euro may be preparing to bounce against the British Pound after prices put in a bullish Piercing Line candlestick pattern. Near-term support-turned-resistance is at 0.7222, the March 31 low, with a break above that on a daily closing basis exposing the March 25 high at 0.7384. Alternatively, a move below the April 23 bottom at 0.7116 clears the way for a challenge of the 38.2% Fibonacci expansion at 0.7005.
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