EUR/GBP Technical Analysis: Ready to Return Above 0.89 Figure?
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- EUR/GBP Technical Strategy: Flat
- Euro breaks above Fib resistance, hints at move above 0.89 is ahead
- Short position tactically closed despite inconclusive stop-loss trigger
The Euro may be preparing another push higher toward the middle of the range confining moves against the British Pound since late September. The pair managed to push beyond resistance marked by the 23.6% Fibonacci retracement at 0.8835 against the backdrop of a broadly stronger single currency.
From here, a daily close above the 38.2% level at 0.8925 opens the door for a challenge of the 0.8998-0.9007 area (50% Fib, range top). Alternatively, a move back below 0.8835 and counter-trend line support at 0.8809 paves the way for a retest of the 0.8733-46 region (September 27, November 1 lows).
While it could be argued that the short EUR/GBP trade activated at 0.8816 did not strictly meet stop-loss parameters, the break of Fibonacci resistance is nonetheless worrying, especially considering incoming fundamental event risk. With that in mind, the position has been closed.
Not sure where to start on your EUR/GBPtrading strategy? Check out our beginners’ guide!
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