Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/GBP Technical Analysis: Short Trade Activated Above 0.73

EUR/GBP Technical Analysis: Short Trade Activated Above 0.73

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Short at 0.7325
  • Euro Makes Good on Bearish Chart Setup, Breaches Key Trend Line Support
  • Short Trade Triggered Initially Targeting Below 0.73 Figure vs. British Pound

The Euro turned lower against the British Pound as expected afterputting in a bearish Dark Cloud Cover candlestick pattern. A break below rising trend line support set from early August hints at deeper losses and reinforces the case for a double top below the 0.75 figure.

Near-term support is now at 0.7278, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a test of the 50% level at 0.7211. Alternatively, a move back above the 23.6% Fib at 0.7360 clears the way for a challenge of the 14.6% retracement at 0.7410.

Technical positioning and risk/reward parameters appear attractive and we will now enter short, initially targeting 0.7278. A stop-loss will be activated on a daily close above 0.7360. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.

Losing Money Trading Forex? This Might Be Why.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.