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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7341

• Support: 0.7097, 0.7028, 0.6944

• Resistance: 0.7150, 0.7198, 0.7234

The Euro put in a bullish Morning Star candlestick pattern, hinting a move higher against the British Pound. A daily close above the 23.6% Fibonacci retracement at 0.7150 exposes falling trend line resistance at 0.7198. Alternatively, a reversal below the 14.6% retracement at 0.7097opens the door for a test of the 76.4% Fib expansion at 0.7028.

We entered short EURGBP at 0.7341 and subsequently booked profit on half of the position. The rest of the trade remains open to capture any further downside. The stop-loss has been adjusted to the breakeven level (0.7341).

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Daily Chart - Created Using FXCM Marketscope

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

original source

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