EUR/GBP Technical Analysis: Euro Down Move Expected

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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 sold EURGBP at 0.7323, 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.

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Daily Chart – Created Using FXCM Marketscope

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

EUR/GBP Technical Analysis: Euro Down Move Expected