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- EUR/GBP Technical Strategy: Short at 0.8631
- Euro bottoms above 0.83 figure vs. Pound, launches sharp recovery
- Rebound seems corrective while prices stay below trend line barrier
The Euro is attempting to launch a recovery having found support above the 0.83 figure against the British Pound. Prices have managed the strongest two-day rally in a month thus far but the absence of a break back above rising trend line support-turned-resistance hints gains may be corrective.
A daily close above 0.8485, the intersection of the trend line and the August 24 swing low, opens the door for a test of a horizontal pivot at 0.8584. Alternatively, a breach of support at 0.8282, the 38.2% Fibonacci retracement, clears the way for a challenge of the 0.8117-45 area (April 7 high, 50% level).
A EUR/GBP short trade was triggered at 0.8631 and partial profits have been taken. Remaining exposure will continue to be in play for now, looking for downward resumption after corrective gains. The stop-loss has been adjusted to the breakeven level (0.8631).
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