EUR/GBP Technical Analysis: Upside Correction Under Way?
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- EUR/GBP Technical Strategy: Flat
- Euro validates signs of bearish exhaustion, breaks higher vs. Pound
- Booking profit on short exposure as larger correction looms ahead
The Euro turned higher against the British Pound as expected, with prices breaking the boundaries of the near-term down trend in play since mid-November. The dominant trajectory continues to favor weakness but a larger correction upward may be in the cards ahead.
From here, a daily close above the 23.6% Fibonacci retracement at 0.8522 opens the door for a test of the 38.2% level at 0.8656. Alternatively, a move back below the 14.6% Fib at 0.8439 paves the way for a challenge of double bottom support at 0.8330.
A EUR/GBP position was set to activate at 0.8994 and partial profit subsequently booked after prices reached the trade’s initial objective. Remaining exposure will now be booked as positioning warns of a near-term bias shift ahead of a much-anticipated ECB rate decision.
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