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EUR/GBP: Waiting For Further Weakness

Published 04/22/2015, 01:49 AM
Updated 07/09/2023, 06:31 AM

Talking Points:

  • EUR/GBP Technical Strategy: Short at 0.7311
  • Support: 0.7149, 0.7005, 0.6887
  • Resistance: 0.7239, 0.7392, 0.7509

The Euro turned lower against the British Pound as expected after producing a Shooting Star candlestick below the 0.74 figure. A daily close below the 23.6% Fibonacci expansion at 0.7149 exposes 38.2% level at 0.7005. Alternatively, a move above the 14.6% Fib at 0.7239 opens the door for a test of the 0.7384-92 area (38.2% Fib retracement, March 25 high).

We entered short EUR/GBP at 0.7311 and have since booked profit on half of the trade. The rest of the position will remain in play with a stop-loss at the breakeven level (0.7311) to capture any further downside momentum.

EUR/GBP Daily Chart

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