Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/GBP Technical Analysis: 3-Month Range Floor Support Exposed

EUR/GBP Technical Analysis: 3-Month Range Floor Support Exposed

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Short at 0.8824
  • Euro recoils from resistance, suffers worst two-day drop in over a month
  • Short position activated, looking for a retest of recent range floor support

The Euro looks vulnerable to deeper losses after suffering the worst two days in over a month against the British Pound. Prices recoiled from resistance capping the upside since mid-October after putting in a bearish Evening Star candlestick pattern, with the medium-term range floor now in the crosshairs.

From here, a daily close below the 0.8733-46 area (September 27, November 1 lows) opens the door for a test of the 38.2% Fibonacci expansion at 0.8689. Alternatively, move back above former support in the 0.8842-65 zone, now recast as resistance, paves the way for a retest of the 38.2% Fib retracement at 0.8925.

Technical and risk/reward parameters appeared compelling and a short EUR/GBP position was activated at 0.8824, initially targeting 0.8746. A stop-loss will be triggered on a daily close above 0.8865. Profit on half of the trade will be booked and the stop moved to breakeven when (and if) the first objective is met.

Not sure where to start on your EUR/GBP trading strategy? Check out our beginners’ guide !

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.