EUR/GBP Technical Analysis: Down Trend Resumption Stalls
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- EUR/GBP Technical Strategy: Flat
- Euro down trend resumption aborted as prices find support below 0.89
- Confirmation, improved risk/reward setup sought to re-enter short trade
The Euro managed to hold off down trend resumption against the British Pound, carving out the bottom of a consolidation range below the 0.88 figure. The down trend launched in late August still seems to define overall positioning however, with gains from September lows looking corrective in that context.
Range floor support is at 0.8880, a barrier reinforced by a rising counter-trend line (now at 0.8906). A daily close below that initially exposes the 38.2% Fibonacci expansion at 0.8819. Alternatively, a push above the 50% Fib retracement at 0.9026 targets the 61.8% threshold at 0.9093.
The short EUR/GBP position activated at 0.8896 was stopped out. Re-entering the trade will require confirmation on a breach of counter-trend support. A tactical long position in the meantime seems unattractive from a risk/reward perspective. On balance, standing aside seems to be most appealing for now.
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