DailyFX.com -

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

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 expansionat 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 EURGBP 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.

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

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.