Tuesday, September 30, 2014

EUR/GBP Technical Analysis: Holding Short on 0.78 Break




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Talking Points:



The Euro appears vulnerable to deeper losses against the British Pound after falling to the weakest level in 26 months. Near-term support is in the 0.7740-51 area, marked by the 61.8% Fibonacci expansionand the July 2012 low, with a break below that on a daily closing basis exposing the 76.4% level at 0.7663. Alternatively, a reversal above the 50% Fib at 0.7802 opens the door for a test of the 38.2% expansion at 0.7864.



We entered short EURGBP at 0.7850and have since taken profit on half of our exposure.The rest remains open to capture reneweddownside momentum. The stop-loss is now at the breakeven level (0.7850).



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EUR/GBP Technical Analysis: Holding Short on 0.78 Break


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/GBP Technical Analysis: Holding Short on 0.78 Break

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