EUR/GBP Technical Analysis: Struggling to Break 0.71 Figure
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- 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.
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