EUR/GBP Technical Analysis: Short Position Now in Play
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- EUR/GBP Technical Strategy: Short at 0.7040
- Support: 0.6930, 0.6893, 0.6828
- Resistance: 0.7039, 0.7088, 0.7169
The Euro turned lower against the British Pound, with sellers now poised to challenge support below the 0.70 figure. A daily close below the 0.6930-58 area (July 17 low, 38.2% Fibonacci expansion) exposes the 50% level at 0.6893. Alternatively, a turn back above the 23.6% Fib at 0.7039 opens the door for a challenge of the 14.6% expansion at 0.7088.
The long-term EURGBP down trend appears to be resuming and we will now enter short, initially targeting 0.6958. A stop-loss will be activated on a daily close above 0.7088. We will take profit on half of the trade and move the stop-loss to breakeven once the first objective is reached.
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--- 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.