EUR/GBP Technical Analysis: Pound Drops Most in 6 Years
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- EUR/GBP Technical Strategy: Flat
- British Pound Drops Most in Six Years Against Euro After ECB Policy Announcement
- Looking for Signs of Bullish Exhaustion to Enter Short in Line with Long-Term Trend
The Euro raced upward against the British Pound having made good on bullish technical cues and established a bottom below 0.70 as expected. The currency has now claimed a foothold above the 0.72 figure having issued the largest daily advance since March 2009.
Looking ahead, a daily close above the 50% Fibonacci retracement at 0.7238 opens the door for a challenge of the 61.8% level at 0.7298. Alternatively, a reversal below the 38.2% Fib at 0.7177 paves the way for a retest of the 23.6% retracement at 0.7103.
The dominant EUR/GBP trend continues to favor the downside. With that in mind, we will treat this upswing as a future selling opportunity, waiting for an actionable signal suggesting the correction has been exhausted to enter short. In the interim, we remain on the sidelines.
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