EUR/GBP Technical Analysis: Double Top May Be Taking Shape
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/GBP Technical Strategy: Flat
- Euro may be carving out a double top below 0.88 versus British Pound
- Confirmation of reversal needed for actionable short trade opportunity
The Euro may be preparing to turn lower against the British Pound as the appearance of a Shooting Star candlestick hints at ebbing upside momentum. A reversal could ultimately lead to the formation of a double top below the 0.88 figure.
Near-term supportis in the 0.8582-0.8607 area (trend line, 23.6% Fibonacci expansion), with a break below that on a daily closing basis exposing the 14.6% level at 0.8503. Alternatively, a push above the 0.8725-77 zone (August 16 high, 38.2% Fib) opens the door for a test of the 50% expansion at 0.8914.
An actionable trade setup is absent for now.A reversal lower is in line with the expected fundamental narrativebut a Shooting Star is insufficient as a stand-alone reversal signal without further confirmation. As such, opting for the sidelines seems prudent for the time being.
Track short-term EUR/GBP trading patterns with the GSI indicator!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.