EUR/GBP Technical Analysis: Short Position Triggered

DailyFX.com -

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

Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7323

• Support: 0.7258, 0.7181, 0.7055

• Resistance: 0.7384, 0.7443, 0.7545

The Euro may be preparing to turn lower against the British Pound once again after prices put in a bearish Evening Star candlestick pattern. A daily close below the 14.6% Fibonacci expansion at 0.7258 exposes the 23.6% level at 0.7181. Alternatively, a move above the March 25 high at 0.7384opens the door for a test of the 50% Fib retracement at 0.7443.

We will now re-enter short EURGBP, initially targeting 0.7258. A stop-loss will be activated on a daily close above 0.7384. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is reached.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/GBP Technical Analysis: Short Position Triggered

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.