EUR/GBP Technical Analysis: Taking Aim Below 0.85 Figure
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- EUR/GBP Technical Strategy: Short at 0.8604
- Euro slips below 0.86 figure vs. Pound, hints down trend resuming
- Sellers now aim to test under 0.85 mark, short position activated
The Euro looks to be resuming the down move begun against the British Pound in October after a corrective recovery from early-December lows. Prices have established a foothold below the 0.86 figure, hinting that deeper losses are on the horizon.
From here, a daily close below the 38.2% Fibonacci expansion at 0.8484 opens the door for a test of the 0.8334-70 area (double bottom, 50% level). Alternatively, a move back above the 23.6% Fib at 0.8624 paves the way for another challenge of the 14.6% expansion at 0.8711.
Risk/reward parameters now look acceptable and a short trade has been activated at 0.8604, initially targeting 0.8484. A stop-loss will be activated on a daily close above 0.8624. Profit on half of the trade will be taken and the stop moved to breakeven when the first objective has been met.
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