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EUR/GBP Technical Analysis: Struggling to Break 0.71 Figure

EUR/GBP Technical Analysis: Struggling to Break 0.71 Figure

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • EUR/GBP Technical Strategy: Short at 0.7325
  • Euro Dips to 11-Week Low But Prices Fail to Clear Path Below 0.71 vs. British Pound
  • Short Trade Still in Play, Looking for Continuation of Down Trend from mid-October Top

The Euro dipped to the lowest level in eleven weeks against the British Pound but prices failed to secure a confirmed break of chart support near the 0.71 figure. The pair is attempting to extend a down move initiated by the formation of a bearish Dark Cloud Cover candlestick pattern, as expected.

A daily close below the 23.6% Fibonacci expansion at 0.7117 clears the way for a test of the next downside barrier at 0.7066, the 38.2% level. Alternatively, a move above the 14.6% Fib at 0.7148 – now recast as resistance – opens the door for a challenge of the October 30 high at 0.7199.

We entered short EUR/GBP at 0.7325 and subsequently took profit on half of the position. The rest of the trade remains in play to capture any further on-coming weakness. The stop-loss has been trailed to the breakeven level.

Losing Money Trading Forex? This Might Be Why.

EUR/GBP Technical Analysis: Struggling to Break 0.71 Figure

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