EUR/GBP Technical Analysis: Still Holding Short Position
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- EUR/GBP Technical Strategy: Short at 0.7040
- Support: 0.7025, 0.6930, 0.6893
- Resistance: 0.7088, 0.7141, 0.7206
The Euro corrected higher against the British Pound after finding interim support below the 0.71 figure. Near-term resistance is at 0.7088, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% Fib retracement at 0.7141. Alternatively, a move below the 0.7025-39 area (August 18 low, 23.6% expansion) clears the way for a test of the 0.6930-58 zone (July 17 low, 38.2% expansion).
We entered short EURGBP at 0.7040, initially targeting 0.6958. A stop-loss is set to trigger on a daily close above 0.7088. We will book profit on half of the position and trail the stop-loss to the breakeven level after the first target is hit.
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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.